Vedanta shares delivered flat returns since demerger; where is the metal stock headed?

Shares of Vedanta Ltd are almost unchanged since the last one month, leaving investors guessing about the outlook of the stock. Since the demerger announcement in September end too, the shares of Vedanta have clocked flat returns. The stock closed at Rs 222.5 on September 29 before the demerger announcement. In the current session, the metal stock was trading at Rs 219 on BSE. In the last one month, the Vedanta stock is down nearly 2% 

Vedanta shares opened on a flat note at Rs 223 today against the previous close of  Rs 222.70 on BSE. Market cap of the firm stood at Rs 81,536 crore. A total of 1.74 lakh shares of the firm changed hands amounting to a turnover of Rs 3.85 crore on BSE. Vedanta shares have a one-year beta of 1.2, indicating high volatility during the period.    

Here's a look at what analysts said on outlook of the Vedanta stock.  

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "Of late, the stock is hovering near the weak zone after it broke the Rs 232 levels and currently also with a resistance barrier witnessed near that Rs 232 levels would need to breach above that level for the bias to improve to some extent. The major support would be the low made recently at around Rs 208 levels below which the matter may worsen further and anticipate for intensified selling pressure. For the overall trend to improve from current levels, it has to cross decisively above the Rs 244 zone to establish some conviction for further rise." 

Ravi Singhal, CEO, GCL Broking said, " Vedanta stock has strong support near Rs 210 levels. It has resistance near Rs 240. So any side breakout makes big moves in stock." 

Abhijeet from Tips2trades said, "Vedanta stock price is sideways to bullish prior to the Q2FY24 results with strong resistance at Rs 233. A daily close above this resistance could lead to target of Rs 246 in the near term. Support will be at Rs 224." 

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 43.6, signaling the stock is trading neither in the oversold nor in the overbought territory. 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.   

Vedanta shares fell to a 52-week low of Rs 207.85 on September 28, 2023 and a 52-week high of Rs 340.75 on January 20, 2023.  Vedanta shares have lost 30.61% this year and fallen 21.69% in a year.      

The Anil Agarwal-led firm reported a 40% decline in net profit to Rs 3308 crore in the first quarter. Revenue slipped 13% to Rs 33,242 crore in Q1 from Rs 38,251 crore during Q1FY23. The company declared an interim dividend of Rs 18.5 per share.         

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.      

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.    

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