Vedanta shares approach Rs 400 mark, what should investors do?

Shares of Vedanta approached the Rs 400 mark amid weak sentiment in the equity market today. Vedanta stock rose 2% to a 52-week high of Rs 396.95 on BSE in early deals. Later, the stock turned flat and was trading at Rs 388.85 against the previous close of Rs 388.90 on BSE.

However, the stock market saw a sell-off amid reports that Israel carried out missile attck on Iran. Market cap of the metal and mining firm stood at Rs 1.44 lakh crore.

In the last one month, the Vedanta stock has gained nearly 45%. In six months, the stock is up 71%.

A total of 18.21 lakh shares of the firm changed hands amounting to a turnover of Rs 70.99 crore on BSE. Vedanta shares have a one-year beta of 0.8, indicating low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 86.4, signaling the stock is trading in the oversold territory. Vedanta shares are trading higher than the 5 day, 10 day, 20 day 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

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

Osho Krishan, Sr. Analyst- Technical and Derivatives Research at Angel One said, “Vedanta has witnessed a spectacular move of over 38 percent in the current month post the multi-week breakout. After the recent traction one must refrain from complacency as it might attract some cool-off in the near period, and this needs to be considered healthy. On the levels front, the bullish gap of Rs 345-340 is likely to cushion short term blip, while strong support lies around Rs 320-310 odd zone in the comparable period.”

Abhijeet from Tip2trades said, "Vedanta stock price looks extremely overbought on the Daily charts with next resistance at 406. Investors should book profits at current levels as a Daily close below support of 383 could lead to targets of 347-310 in the near term."

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, "The stock had a stellar run-up of over 30 percent in the last few sessions, leading to a medium-term bullishness in the price action. Going forward, until the support of Rs 355 is defended, the positive bias shall continue to witness accumulation, with momentum to scale Rs 400 mark in the coming days. A breakdown below Rs 355 could take the counter to Rs 320 levels, its next support. The overall bias is intact with price spotting optimism despite trading in the overbought territory of the Relative Strength Index (RSI)."

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.