Vedanta shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. Shares of Vedanta Ltd have doubled investor wealth this year. The stock of the metal and mining major has risen from Rs 258.5 from December 29 last year to Rs 526.50 in the current session, delivering 103% returns in 2024. In comparison, Sensex has risen 12.62% during the period. In the current session, shares of Vedanta hit their record high for the second straight day. The stock rose 2% to a high of Rs 522.40 on BSE. Market cap of the firm climbed to Rs 2.04 lakh crore. A total of 4.25 lakh shares of the firm changed hands amounting to a turnover of Rs 22.18 crore on BSE.
Vedanta shares have a one-year beta of 1.3, indicating high volatility during the period. In terms of technicals, the relative strength index (RSI) of Vedanta stands at 74.2, signaling the stock is trading in the overbought territory.
In five years, the stock has risen 262%. Vedanta shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
With the scrip showing a stellar rally in 2024, investors are guessing whether they should buy, sell or hold the Vedanta stock.
Laxmikant Shukla, Technical Research Analyst at YES Securities is cautious on the outlook of Vedanta stock.
Resistance for the stock lies at Rs 525 and support at Rs 488.
"Vedanta has seen a sharp rise, moving from Rs 449 to a high of Rs 525, mirroring the broader uptrend in the metal sector. While this upward momentum is encouraging, it's important to be aware of potential short-term corrections after such a rapid ascent. The recent price action has shifted the support level slightly higher to around Rs 488. Despite the positive trend, it's prudent for investors to exercise caution and employ strict trailing stop-loss orders to protect their profits," said Shukla.
Mandar Bhojane, Equity Research Analyst, Choice Broking said, "On the daily chart, the stock has formed a well-defined rounding bottom pattern and is on the verge of a breakout, accompanied by a significant increase in trading volume. This development signals a strong buying interest and potential for further upward movement. On the weekly chart, Vedanta is trading within a rectangle pattern and appears poised for a breakout. If the price sustains above Rs 520, it could advance towards Rs 600 and Rs 620 in the short term. From a technical perspective, immediate support is observed near Rs 500, making it an attractive level for buy-on-dip strategies. To manage risks effectively, traders are advised to place a stop-loss at Rs 470."
A R Ramachandran, SEBI registered Independent analyst says, "Vedanta stock price is bullish but also slightly overbought on the Daily charts with strong resistance at Rs 524. Investors should be booking profits at current levels as a daily close below the support of Rs 498 could lead to target of Rs 451 in the near term.
"Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, Vedanta is currently trading at Rs 518, showing strong bullish momentum. The stock is on the verge of a potential breakout, with Rs 522 being a crucial resistance level. A sustained move above Rs 522 would make it a good buy for a potential target of Rs 552, supported by robust technical indicators and momentum. The Relative Strength Index (RSI) stands at 75.37, indicating strong upward momentum, albeit nearing overbought territory. The Average Directional Index (ADX) is above 39, confirming the strength of the ongoing trend. However, risk management remains critical. Views will be negated if the price falls below Rs 490, which acts as a key support level."
Brokerage firm Equirus has a buy call on Vedanta stock with a price target of Rs 560, citing attractive valuations. Equirus expects Vedanta's revenue, EBITDA, and net profit to grow at a compounded annual growth rate (CAGR) of 8.4%, 16%, and an astounding 76.5%, respectively.
Nuvama Institutional Equities has buy call with a price target of Rs 663 on the stock
The brokerage is of the view that despite a rise in alumina prices, profitability of aluminium segment shall rise in Q3 due to increased usage of captive alumina, 40 per cent of alumina buiyng is on spot basis and firm aluminium prices. "We retain a positive stance on Vedanta."