Vedanta shares rally 39% in a month. Should you ride the momentum?
Vedanta, which have rallied 39% in the last month, are now hovering above all its significant EMAs on the daily time frame with target prices going above Rs 500.
Vedanta has seen a decisive spurt after a breakout around at Rs 280 zone last month and has soared almost 50% since then in a near-vertical rally, levitating the counter to overbought terrain on technical grounds.
«The stock has skyrocketed and hovers way above all its significant EMAs on the daily time frame. From a technical standpoint, the momentum persists in the counter, but one must adopt a pragmatic approach and keep trailing stop losses to higher zones as it continues its northward march,» said Osho Krishan, Senior analyst, technical & derivatives, Angel One.
For now, Krishan suggests that the Rs 390-380 subzone is likely to cushion any blips, while strong support lies around the Rs 365 zone (20-DEMA) and a breach below the same could only pause momentum in the counter.
Last week, the company also posted Q4 results where Vedanta reported a net profit of Rs 1,369 crore, down over 27% (YoY) compared to Rs 1,881 crore reported in the year-ago period, while the consolidated revenue from operations was also down by 6% YoY at Rs 34,937 crore.
Sanjiv Bhasin also bets on Vedanta as one of the cheapest commodity stocks, which could double investors’ money. “If you have a vision of doubling your money in the next year, I think it will be Vedanta once the six companies demerge. You will have to take in light that, yes, there is a debt element which has
