Investors with a short term perspective can buy the stock of Vedanta at current levels. The 3.5 per cent gain accompanied by above average volume on Tuesday, has taken the stock above a crucial resistance level of ₹150, thus providing traders an opportunity to buy it at current levels.
After a fall from around ₹160 in early November, the stock found support at ₹140 and started to move sideways. This key support cushioned the stock in early December as well as last week. Subsequently, the stock began to trend upwards breaching the 21- and 50-DMAs and trades well above them. The recent close above the immediate resistance level of ₹150 strengthens the up move.
The daily relative strength index is on the brink of entering the bullish zone from the neutral region while the weekly RSI continues to feature in the neutral region. Besides, the daily as well as the weekly price rate of change indicators hover in the positive terrain implying buying interest.
The short-term outlook is bullish for Vedanta. The stock has the potential to trend upwards and reach the price targets of ₹158.5 and ₹161.5 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹149.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)