Vedanta Share Price Target - 6th July

Today's Opening - 219

Today's High - 225

Today's Low - 217

Today's Closing - 219

Marginal negative closing today, with low volumes. The stock made a fresh 52-week low today. The stock price has remained below the 5-day Exponential Moving Average (EMA) broadly since mid-Sep last year.

Vedanta 365-Days 5-day EMA Trend

 

The 12, 26-day Moving Average Convergence Divergence has been negative since 2nd May. The 14-day Negative Directional Index has been stronger than the Positive Directional Index since 2nd May.
The 20-day Commodity Channel Index too has been negative since 2nd May. The 2-day Relative Strength Index had remained below 30 since 24th May.
In a latest development on the company's Thootukudi plant, the National Green Tribunal (NGT) has sought an explanation from the Tamil Nadu state government and the State Pollution Control Board regarding the permanent closure of the Sterlite copper plant.

In my post on 15th June, I had mentioned that the stock might come down to 230. After losing almost 11% over the past one month, Vedanta has broken the support level of 230 too and is now trying to take support at 217. The low volume today is also a good indication that 217 is lending support. The stock is long overdue for a short pullback. The stock might see a rise till 230 before starting to drop again. Use this rise to book profits. Post 217, the next support is at 204. Keep buying on dips with a long-term view.


If you find this analysis useful, you may also want to check out my latest posts on Tata Motors, ONGC and BHEL.