Vedanta shares slip 18% from record high; here's what analysts say

Shares of Vedanta Ltd have lost 18% from their record high within a month. Vedanta stock reached a record high of Rs 527 on December 16, 2024. The stock fell to a low of Rs 428.50 in the current session. On the other hand, the stock of metal and mining major has risen 72% from the 52-week low of Rs 249.75 reached on March 13, 2024. 

Vedanta stock looks weak in terms of price action. Vedanta shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The stock of Anil Agarwal-led metal and mining company was trading lower in early deals. The stock slipped 2.55% to Rs 427.90 on Friday against the previous close of Rs 438.65 on BSE. 

Market cap of the firm slipped to Rs 1.67 lakh crore. A total of 0.82 lakh shares of the firm changed hands amounting to a turnover of Rs 3.54 crore on BSE. 

Analysts are mostly bearish on the outlook of the stock. 

Jigar S Patel from Anand Rathi said, "Support will be Rs 420 and resistance at Rs 465. A decisive move above the Rs 465 level may trigger a further upside of Rs 480. The expected trading range will be between Rs 420 to Rs 470 for the short-term."

AR Ramachandran, SEBI registered Independent analyst says, "Vedanta stock price is slightly bearish on the Daily charts with strong resistance at 460. A Daily close below support of 438 could lead to a target of 404 in the near term."

Hardik Matalia, Derivative Analyst at Choice Broking said, "Vedanta Ltd is currently trading around Rs 439, moving within a wide consolidation range of Rs 425-510 over the past few months. The stock is approaching the lower boundary of this trading range, reflecting limited upward momentum. Selling pressure has been evident near the higher levels, contributing to the stock's failure to break out above the range. The ongoing consolidation indicates indecisiveness, with a bias towards further weakness unless key support holds." 

"Technically, Vedanta is trading below its short-term (20-day) and medium-term (50-day) EMAs, signaling bearish sentiment in the near term. The price is hovering close to its long-term (200-day) EMA, which is a critical support zone. A decisive breach below this level could trigger extended selling pressure, potentially pushing the stock below Rs 425 and amplifying bearish momentum. The RSI around 37.50 is trending downwards, indicating weakening strength and a lack of positive divergence. For fresh buying interest to emerge, the stock needs to display strong reversal signals near the current support levels. A bullish confirmation would be a sustained move above Rs 470, which could indicate a potential breakout from the consolidation zone and trigger a retest of the higher levels. Until such signals appear, caution is advised for new long positions.  Existing holders are recommended to maintain a strict stop-loss at Rs 425 on a closing basis to manage downside risk effectively. Fresh long positions should be initiated only if the stock manages to sustain above Rs 470, confirming a trend reversal and improved market strength," added Matalia. 

In five years, the stock has risen 167% and gained 60.11% in a year. Vedanta shares have a one-year beta of 1.3, indicating very high volatility during the period. In terms of technicals, the relative strength index (RSI) of Vedanta stands at 37.3, signaling the stock is trading neither in the overbought nor in the oversold territory.