Vedanta ends week with 11% loss on promoter paring stake. How to trade next week?
Amid offloading of a 4.1% stake by a promoter entity, shares of Vedanta ended over 11% lower this week. “On the lower end, it has support at Rs 225, where it could fall from the current level. On the higher end, resistance is visible at Rs 256,” says Rupak De, Senior Technical Analyst at LKP Securities.Edited excerpts from a chat:How would you read the roller coaster ride amid the fear around Fitch report? Is the bullish momentum intact?Nifty fell sharply following the downgrading of the US credit rating from AAA to AA+, leading to a breakdown from the recent consolidation on the daily timeframe.
The recent fall has pulled the index below the 21-day exponential moving average (EMA) for the first time since March 29. On an immediate basis, 19,300 have acted as support. However, on the higher end, 19,566 is likely to act as a crucial resistance level.
The sentiment is likely to remain weak as long as Nifty remains below 19,566. However, a decisive move above 19,566 could take the index towards 19,700-19,750. On the other hand, a failure to move above 19,566 could trigger selling pressure.Small and midcaps were relatively less affected this week and signalled strength in the broader market. Which pockets of the market look more resilient than others? Amid the selloff in largecap stocks, midcap and smallcap stocks have been witnessing a stellar performance.
In fact, the Nifty Smallcap and Midcap indices have recovered to their all-time highs following a one-day sell-off. Among the sectors, IT and pharma stocks are likely to continue to remain resilient amid the market sell-off.Vedanta was down 11% in the week. What would be your trading strategy in the coming days? The stock has fallen from consolidation on the weekly chart,
. Read more on economictimes.indiatimes.com
