Vedanta shares trading above Rs 300 mark for third session; here’s why
Vedanta share price today: Vedanta stock hit 52-week high for the third session ahead of the firm’s meeting for fundraising through market-related instruments set to be held today.
- Apr 4, 2024,
- Updated Apr 4, 2024 10:20 AM IST
Shares of metal and mining major Vedanta Ltd are trading above the Rs 300 mark for the third straight session today. Vedanta stock hit 52-week high for the third session ahead of the firm’s meeting for fundraising through market-related instruments set to be held today.
In its regulatory filing on April 1, Vedanta said, "We would like to inform you that the Company proposes to hold a meeting of its duly constituted Committee of Directors on Thursday, April 04, 2024, to consider the proposal for issuance of Non-Convertible Debentures on a private placement basis as part of its routine financing and refinancing that is undertaken in the ordinary course of business."
The Anil Agarwal-led firm hit a 52-week high of Rs 312.50, rising 4.67% in the current session. In terms of returns, the stock fell 28.11% in two years and rose 7% in a year. In five years, the stock has climbed 61.90%.The stock hit a 52-week high of Rs 308 on April 3, 2024 and Rs 301.90 on April 2, 2024.
Riyank Arora, Technical Analyst at Mehta Equities said, “Metal stocks witnessed good profit booking during the latter half of the day as stocks saw some profit booking coming in at higher levels. Technically, Vedanta has touched a major resistance mark of Rs 301.00 on its weekly charts and is showing signs of healthy profit booking. We advise investors to lock in their trading gains here and wait for a dip towards Rs 282 – Rs 285 for any fresh buying positions on the stock.”
The large cap stock is trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. It signals the stock is trading in bullish zone.
Market cap of the firm rose to Rs 1.13 lakh crore. Vedanta shares have a one-year beta of 0.8, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Vedanta stands at 66.8, signaling the stock is trading neither in the oversold nor in the overbought territory.
Brokerage Nuvama is bullish on the stock with a target price of Rs 394. It has revised its earlier target of Rs 371.
“Management has guided for USD in debt reduction at Vedanta Resources by FY27 without any incremental debt at Vedanta Ltd. The monetisation of steel and iron ore assets by Q1FY25E (expect $2 bn) shall act as a first step. Moreover, we expect a DPS of Rs 40 each in FY25E and FY26E. Reiterate 'BUY' with a target price of Rs 394 (earlier Rs 371),” said Nuvama.
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.
Shares of metal and mining major Vedanta Ltd are trading above the Rs 300 mark for the third straight session today. Vedanta stock hit 52-week high for the third session ahead of the firm’s meeting for fundraising through market-related instruments set to be held today.
In its regulatory filing on April 1, Vedanta said, "We would like to inform you that the Company proposes to hold a meeting of its duly constituted Committee of Directors on Thursday, April 04, 2024, to consider the proposal for issuance of Non-Convertible Debentures on a private placement basis as part of its routine financing and refinancing that is undertaken in the ordinary course of business."
The Anil Agarwal-led firm hit a 52-week high of Rs 312.50, rising 4.67% in the current session. In terms of returns, the stock fell 28.11% in two years and rose 7% in a year. In five years, the stock has climbed 61.90%.The stock hit a 52-week high of Rs 308 on April 3, 2024 and Rs 301.90 on April 2, 2024.
Riyank Arora, Technical Analyst at Mehta Equities said, “Metal stocks witnessed good profit booking during the latter half of the day as stocks saw some profit booking coming in at higher levels. Technically, Vedanta has touched a major resistance mark of Rs 301.00 on its weekly charts and is showing signs of healthy profit booking. We advise investors to lock in their trading gains here and wait for a dip towards Rs 282 – Rs 285 for any fresh buying positions on the stock.”
The large cap stock is trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. It signals the stock is trading in bullish zone.
Market cap of the firm rose to Rs 1.13 lakh crore. Vedanta shares have a one-year beta of 0.8, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Vedanta stands at 66.8, signaling the stock is trading neither in the oversold nor in the overbought territory.
Brokerage Nuvama is bullish on the stock with a target price of Rs 394. It has revised its earlier target of Rs 371.
“Management has guided for USD in debt reduction at Vedanta Resources by FY27 without any incremental debt at Vedanta Ltd. The monetisation of steel and iron ore assets by Q1FY25E (expect $2 bn) shall act as a first step. Moreover, we expect a DPS of Rs 40 each in FY25E and FY26E. Reiterate 'BUY' with a target price of Rs 394 (earlier Rs 371),” said Nuvama.
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.