Shares of Vedanta retreated from 2-1/2 week high on falling metal prices. The stock dropped as much as 4 per cent to Rs 230, the top percentage loser on the bourses.
The copper to aluminium producer posted its biggest intraday percentage loss since June 19 after LME copper prices had hit a 7-month low overnight. Aluminium prices had also hit a near-three month low last night.
Technically, Vedanta stock faces resistance at Rs 242 which it failed to break on Monday. The resistance is identified as the 38.2 per cent Fibonacci retracement level of the uptrend from the February 12, 2016 low to the January 29, 2018 high.
The stock's wave pattern suggests it's still in the third wave C of a three-wave corrective cycle. The stock trades below its 20, 50 and 200-day exponential moving averages, which is seen bearish for the stock.
Vedanta had fallen 27 per cent this year up to Monday's close compared with a 14 percent fall in the Nifty Metal index.