Chart Check: Metal stocks on a roll! Range breakout on weekly chart makes Vedanta a top buy

By Jason Junior On Jan 20, 2023

Why You Need a Separate Phone Line for Your Business

Oct 9, 2023

F&O Ban Today: F&O Ban: Delta Corp, Balrampur…

Apr 17, 2023

, part of the metal sector, rose by nearly 20% in the last 3 months which helped the stock to break out from a range since May 2022 on the weekly charts.

The stock largely moved in a range where Rs 320 acted as a stiff resistance on the upside while on the downside 200-WMA acted as a support or at levels closer to Rs 200.

Vedanta stock price closed at Rs 324 on January 18, 2023, which resulted in a breakout and it has now opened room for the stock to higher in the next 3-4 weeks, suggest experts.

Short-term traders can look at buying the stock now or on marginal dips for a possible target towards Rs 350-355 levels, they say.

In terms of price action, the stock is trading well above most of the short and long-term moving averages of 5,10,30,50,100, and 200-DMA which is a positive sign for the bulls.

ET CONTRIBUTORS

The Relative Strength Index (RSI) is at 60.7. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.

“Vedanta stock is forming higher lows on a monthly scale from the past six months and on the verge of the range breakout on a weekly scale,” Arpit Beriwal, Analyst, Equity Derivatives and Technicals, MOFSL, said.

“It is forming higher lows on the weekly scale from the past three weeks and a strong bullish candle on the daily scale as well. Supports are gradually shifting higher and the stock is trading well above its short-term moving average,” he said.

Relative Strength Index (RSI) is also moving northwards which implies momentum is likely to continue going ahead.

“Overall outperformance is seen in the metal sector and looking at the overall chart structure on daily and weekly scale we expect the stock to move higher,” highlighted Beriwal.

“We recommend buying the stock at current levels with a stop loss below Rs 310 levels on closing basis for an upside move towards Rs 355 zones i.e 9% upside from current levels,” he recommends.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Read original article here

Denial of responsibility! TechnoCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.