Vedanta soars nearly 18% in the past seven trading sessions! What’s buzzing?
Despite the weakness in the market, shares of Vedanta jumped nearly 2% on Monday after strong buying interest at lower levels.
The Indian indices are trading with strong volatility as global jitters continue to weigh investors’ sentiment. Despite the weakness, the Vedanta shares jumped nearly 2% on Monday after strong buying interest at lower levels lifted the stock higher. So far, Vedanta share price has jumped 18% in the past seven trading sessions.
Vedanta has seen a strong boost in the semiconductor business, thanks to strong global demand for chip manufacturing and sales. Recently, CM Gehlot of Rajasthan invited Vedant to set up its semiconductor industry in the state amid a tussle between Maharashtra and Gujarat. Vedanta is likely to create over 1 lakh job opportunities after its sets up its semiconductor plant. Also, the company is likely to seek shareholders’ nod to tap its cash reserve into the balance sheet. This is expected to improve cash flows and help boost bonds due next year.
Vedanta shares have witnessed strong buying interest from investors in recent times, and the stock is trading at its prior swing high. The 14-period daily RSI (62.76) is in the bullish zone and points northwards. The MACD had indicated a bullish crossover lately, which shows a strong upside. The ADX is rising and shows improving trend strength. The Elder Impulse system has also indicated a buy signal. The TSI and KST indicators show an improvement. In a nutshell, the stock is technically strong and is likely to trend higher in times to come.
In the past 3 months, this dividend-paying stock has delivered over 30% returns to its shareholders. In its recent quarterly results, net sales have jumped 35% to Rs 38622 crore, while net profit grew 4% in June 2022. With sound fundamentals and bullish technical parameters, the stock appears to be a good medium-term idea for traders/investors.
Currently, the shares of Vedanta are trading at Rs 296 on NSE. Keep an eye on this stock to track its further progress.
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