Todays Pick

Vedanta (₹150.4): Buy

Yoganand D | | Updated on: Dec 23, 2020

The stock of Vedanta jumped 8 per cent accompanied by above average volume on Wednesday, surpassing a key resistance at ₹147. This rally provides traders with a short-term perspective an opportunity to buy the stock at current levels. Following a sharp fall in the month of October this year from ₹140, the stock found support at ₹91.2 in early November.

Triggered by positive divergence, subsequently, the stock changed direction in early November. Since then, the stock has been on a medium term uptrend. But it encountered a key at ₹147 in mid-December and witnessed a sharp fall that found support at ₹130 on Tuesday and bounced up sharply, climbing 4 per cent. Further, this up-move extended on Wednesday as well by gaining 8 per cent with above average volume, strengthening the medium term uptrend.

Short-term trend is also up for the stock. There has been an increase in the daily volume over the past two trading sessions. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI continue to feature in the bullish zone.

Moreover, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain. The short-term outlook is bullish for the stock and it has potential to continue to trend upwards in the coming trading sessions.

Short-term targets are ₹156.5 and ₹160. Traders can buy the stock with a stop-loss at ₹147.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on December 24, 2020
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you