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Investors with a short-term view can buy the stock of Vedanta at current levels. Witnessing bullish momentum, the stock jumped ₹18 or 6.8 per cent with above average volume on Thursday, breaking above a vital medium-term resistance at ₹275. Since the stock took support at ₹91 in November 2020, it has been in an intermediate-term uptrend. Medium-term trend is also up. But in early May this year, the stock met with a resistance at ₹296 and was on corrective phase until recently.
The stock has emphatically breached the 21- and 50-day moving averages now and trades well above them. The daily relative strength index has entered the bullish zone and the weekly RSI continues to feature in the bullish zone, backing the bullish momentum. Besides, the daily and the weekly price rate of change indicators hover in the positive territory implying buying interest.
The short-term outlook is bullish for Vedanta. It can extend the uptrend and hit the price targets of ₹300 and ₹306 in the forthcoming trading sessions. Traders can buy the stock with a stop-loss at ₹282 levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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