Vedanta Ltd

NSE :VEDL   BSE :500295  Sector : Mining & Mineral products

About Company: Vedanta Ltd is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil & gas. The group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminum, iron ore and oil & gas. It has presence across India, South Africa, Namibia, Ireland, Liberia & UAE.
Its other businesses includes commercial power generation, steel manufacturing & port operations in India and manufacturing of glass substrate in South Korea and Taiwan.

News in VEDL: Metal supply cuts are spreading from China to Europe, as energy shortages drive up costs for electricity and natural gas, threatening more inflationary pressure from rising commodity prices. The latest big catalyst came on Wednesday when Nyrstar – one of the biggest zinc producers – said it will cut output at three European smelters by up to 50 per cent due to rising power prices and costs associated with carbon emissions, added report.

Monthly Chart of VEDL:

Technical Outlook of VEDL:

On Monday 18-Oct-2021, Stock gained 12.91% closing at 374.75 per share. Metal stock has seen a rally today on account of supply output cuts. Technically stock is trading in uptrend and when Fibonacci Retrenchment is plotted on the previous trend, it can be clearly observed stock managed to close above 100% retrenchment levels which lies at 355.70. Now this level would act as strong support for the stock. On the upside we observed trendline resistance around 400. If we look at RSI and Squeeze Momentum Index both signals bullishness in the stock.

Hence we recommend going long on Stock at current levels for the target of 397- 400 in next few trading sessions, One can add more on correction in stock till 355 level. Stop Loss should be maintained below 345 on a closing basis.