Vedanta at near 2-month high; chart suggests more upside

Shares of Vedanta Ltd gain as much as 4.13 per cent to Rs 185.4, their highest since January 31, 2019. The stock breaks above a resistance at Rs 176.45, the 14.6 per cent Fibonacci retracement level of the downtrend from January 29, 2018 high to February 15, 2019 low.

The breakout suggests that in the near term, stock may test the next resistance at Rs 195.35, the 23.6 per cent retracement level. It also breaks above its Ichimoku cloud, seen as a bullish sign.

RSI breaches the 60 level for the first time since September 2018, seen as an indication of reversal of the downtrend. MACD is positive and above its signal line.

As of Thursday's close, stock is up about 22 per cent since hitting a year low of Rs 145.8 on February 15. As of 1 pm, the stock of Vedanta was trading higher by 3.29 per cent at Rs 183.90 in the benchmark index Sensex, while in the broader Nifty the stock was trading higher by 3.31 per cent at Rs 183.95.