Vedanta Share Price is going to remain bearish till Rs 432, has crossed the weekly sports
Vedanta Limited’s share price is a topic of keen interest among investors. The stock closed at ₹446.30, reflecting a decline of 1.71% from the previous day. This news is particularly relevant as traders look ahead to the next trading day, September 19, 2024.
Main Points
Vedanta has been experiencing fluctuations in its share price recently. The stock opened at ₹458.00 and traded within a range of ₹444.40 to ₹471.00 during the day. The trading volume was substantial, with over 34 million shares exchanged, indicating strong market activity.
The company’s recent quarterly results showed a slight revenue growth of 1% quarter-on-quarter but a year-on-year increase of 6%. However, this growth comes amidst concerns about a revenue contraction for the first time in three years, which has raised eyebrows among analysts and investors alike.
Looking ahead to tomorrow, analysts predict that Vedanta’s share price could face further challenges. The predicted target for September 19 is around ₹457, with a trading range expected between ₹420 and ₹494.
Several technical indicators suggest that the stock may continue its downward trend unless it can hold above crucial support levels. Specifically, if Vedanta remains below ₹450.62, it could signal a bearish outlook for the short term.
For traders looking to make informed decisions tomorrow, here are some key levels to monitor:
- Resistance Levels:
- First Resistance: ₹458.65
- Second Resistance: ₹463.40
- Third Resistance: ₹480.50
- Support Levels:
- First Support: ₹432.05
- Second Support: ₹427.30
- Third Support: ₹420
These levels are crucial as they can help traders determine entry and exit points for their trades.
From a technical standpoint, Vedanta is currently trading above its 200-day moving average but is testing its 50-day moving average support level. This positioning suggests that while there may be potential for upside movement, the stock must first stabilize above these averages to gain momentum.
The Relative Strength Index (RSI) indicates that Vedanta is nearing oversold territory, which could lead to a potential bounce back if buying pressure increases in the coming days. However, the current sentiment appears cautious as many investors await clearer signals before committing further capital.
In addition to share price movements, recent news surrounding Vedanta has also impacted investor sentiment:
- Dividend Announcements: Vedanta has declared interim dividends recently, which may attract income-focused investors despite the stock’s volatility.
- Debt Concerns: The company has a high debt-to-equity ratio of around 165%, raising concerns about financial stability amidst fluctuating revenues.
- Market Sentiment: Analysts have noted that there seems to be a shift in market sentiment regarding Vedanta’s long-term growth prospects, particularly in light of its plans to expand nickel sulphate production to meet overseas demand.
