Vedanata is a mining company based in India

Vedanta Limited is a mining company based in India, with its main operations in iron ore, gold and Aluminium. The company is headquartered in Bombay and employs over 60,000 people. We initially posted about Vedanta on the 3rd June 2020 when the share price was just $5.26, this stock is now up around 166% from this level and given that Gold, Iron and Aluminium have risen in value, the stock has a promising future.

Vedanta’s financials are okay and full year guidance will be due in the coming month, the previous year financials can be found here: https://www.vedantaresources.com/InvestorReports/VRL%20IR2020%20Web.pdf

From a technical aspect this stock is very bullish. RSI reads overbought conditions of 78.8 on the weekly timeframe with the stock trading on the limit up of the Bollinger band. A pullback could be very possible in the next week or two but this could provide a good buying entry. To the downside support sits at $12.68 followed by $11.24 and then $10.93. Unless the stock dropped below here would the upside outlook change. Looking to the upside, initial targets/resistance sit at $17.00 followed by $21.04 and then the highs of $21.98. A break above here could take the stock much higher.

An interesting point to make on Vedanta is that profit margins are quite reliant on supply and demand of the minerals they mine, given that commodity prices are high and are looking to continue the general upward action, Vedanta would only benefit from this. That being said, if prices fell for a particular reason Vedanta would then likely fall as a consequence. Technicals do paint a postive picture, but do signal that a pullback would be better first before entering into this stock, but again, soaring commodity prices mean Vedanta see the instant benefit from this, helping raise the price and push technical analysis out of the picture for the time being.