Stock at all-time high: Vedanta Limited

The stock of VEDL has zoomed over 6% on Monday.

Vedanta Limited is a global diversified natural resource company operating across segments which are Copper; Aluminium; Iron Ore; Oil and Gas, etc. It is a major player in its sector and has a market capital of about Rs 1,50,000 crore. The stock of Vedanta is in focus for its recent bullish run.

The stock of VEDL has zoomed over 6% on Monday. The stock opened with a decent gap-up and continued to gain points as the day progressed. On the technical chart, it has formed a strong bullish candle and has hit a fresh all-time high of Rs 404.20. The stock is technically strong as it has formed a series of higher highs and higher lows. Since its prior swing low of Rs 353.80, the stock has gained about 13% in just four trading sessions. Interestingly, on the monthly timeframe, the stock has seen strong buying at lower levels and has formed a hammer candle on the said timeframe. This strong price structure is accompanied by above average volumes. The stock has recorded rise in volume for fourth consecutive day and indicates strong tracing activity.  Thus, the price structure of the stock is pretty bullish.

The stock has displayed a strong performance recently. It has delivered about 17% returns on YTD basis while 13% returns in one month and has outperformed the broader market and most of its peers during this period. Along with this, several technical parameters point towards the stock’s strong positive bias. The 14-period daily RSI has entered the bullish territory while the MACD on the daily timeframe has given a bullish crossover. Interestingly, the OBV has indicated a strong strength from volume’s perspective.

Considering the above points, the stock is expected to trade higher in upcoming days. Moreover, It is a good candidate swing trading. Short term traders and positional traders can expect decent gains in near future.