Vedanta - 24th Dec

Today's Opening - 198

Today's High - 200

Today's Low - 196

Today's Closing - 196

Technical Indicators:

Negative closing today, with low volumes. However, heavy volumes have been witnessed while the stock was continuously sliding down during the previous two weeks when the stock made multi-year lows.
The stock price has remained below the 5-day Exponential Moving Average (EMA) broadly since mid-Sep last year.

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.

External Factors:
While the National Green Tribunal set aside the State Government order on closure of the company's copper smelter plant in Tuticorin and the company followed it up by promptly declaring their plans to spend Rs 100 cr for setting up social infra in the town, the Madras High Court has ordered status quo and restrained the Vedanta group from taking any steps to reopen the unit.

Stock Outlook:

In my post on 7th July, I had mentioned that the stock might come down to 204 and then have a pullback rally. The stock actually hit 201 on 20th July and then bounced back to reach 247 on 3rd Oct only to make a fresh multi-year low of 190 over the past one month. After losing almost 15% over the past three months, Vedanta has conclusively broken the support level of 204 and is now taking support at 190. The metal stocks as a pack are going through a rough phase and Vedanta is no different. The stock has a resistance at 214 and looks in no hurry to reach there. On the negative side, in case 190 gets broken, then the stock can go down to 160. Keep buying on dips with a long-term view.