Vedanta shares rose 78% from 52-week low, overbought on charts; buy, sell or hold?

Vedanta shares rose 78% from 52-week low, overbought on charts; buy, sell or hold?

Shares of Vedanta have recovered over 78% from their 52 week low touched on September 28 last year. Vedanta stock closed 0.68% lower at Rs 370.55 on BSE on Monday compared to the 52-week low of Rs 207.85 reached on September 28, 2023. In the previous session, the metal stock ended flat even as the stock market saw a huge sell-off amid rising Iran-Israel tensions. Market cap of the firm stood at Rs 1.37 lakh crore. In the last one month, the Vedanta stock has gained nearly 38%. In six months, the stock is up 59%.

In the current session, Vedanta shares fell 1.09% to Rs 366.50 on BSE. Market cap of the firm stood at Rs 1.35 lakh crore. A total of 0.62 lakh shares of the firm changed hands amounting to a turnover of Rs 4.66 crore on BSE. Vedanta shares have a one-year beta of 0.8, indicating low volatility during the period.

Here’s a look at what analysts said on outlook of the Vedanta stock.

Osho Krishan, Sr. Analyst- Technical and Derivatives Research at Angel One said, “Vedanta has witnessed a spectacular move of over 36 percent in the current month post the multi-week breakout. After the recent traction one must refrain from complacency as it might attract some cool-off in the near period, and this needs to be considered healthy. On the levels front, the bullish gap of Rs 345-340 is likely to cushion short term blip, while strong support lies around Rs 320-310 odd zone in the comparable period.”

Abhijeet from Tip2trades said, “Vedanta stock price looks bearish and also overbought on the Daily charts with strong resistance at Rs 385. Investors should keep booking profits as a Daily close below support of Rs 348 could lead to target of Rs 285 in the near term.”

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, “The stock had a stellar run-up of over 30 percent in the last few sessions, sparking a medium-term bullishness in the price action. Going forward, until the support of Rs 355 is defended, the positive bias shall continue to witness accumulation, with momentum to scale Rs 400 mark in the coming days. A breakdown below Rs 355 could take the counter to Rs 320 levels, its next support. The overall bias is intact with price spotting optimism despite trading in the overbought territory of the Relative Strength Index (RSI).”

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 83.8, signaling the stock is trading in the oversold territory. 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.

Vedanta shares rose to a 52-week high of Rs 384 on April 15, 2023.

Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.

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