Vedanta shares approach Rs 400 mark, what should investors do?

Vedanta stock experienced a notable rise of 2% to reach a 52-week high of Rs 396.95 on the BSE during early trading sessions. However, the stock later stabilized and was trading at Rs 388.85, slightly below the previous day’s close of Rs 388.90 on the BSE.

This surge in Vedanta’s share price occurred amidst a subdued sentiment in the equity market. However, market conditions shifted due to reports indicating a missile attack by Israel on Iran, leading to a sell-off across the stock market. Despite this, the metal and mining firm maintained a market capitalization of Rs 1.44 lakh crore.

Over the past month, Vedanta’s stock has recorded impressive gains of nearly 45%, while its performance over the past six months reflects an increase of 71%. A total of 18.21 lakh shares of the company were traded, amounting to a turnover of Rs 70.99 crore on the BSE.

From a technical perspective, Vedanta’s relative strength index (RSI) stands at 86.4, indicating that the stock is currently in the oversold territory. Additionally, Vedanta shares are trading above various moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages.

Analysts have provided insights into the outlook for Vedanta’s stock:

• Osho Krishan from Angel One highlights the recent substantial increase in Vedanta’s stock price and suggests that a short-term correction may be expected. He identifies support levels around Rs 345-340 and Rs 320-310.
• Abhijeet from Tip2trades advises investors to consider booking profits at current levels, given the stock’s overbought status on daily charts. He suggests potential downside targets of 347-310 in the near term.
• Avdhut Bagkar from StoxBox acknowledges the recent bullish momentum in Vedanta’s stock and predicts further upside potential, with a target of Rs 400 in the near future. He emphasizes the importance of defending support levels around Rs 355.

Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, operates in various sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium, and power across India, South Africa, and Namibia.

(Note: The information provided here is for informational purposes only and should not be construed as investment advice. Readers are advised to consult with a qualified financial advisor before making any investment decisions.)