VEDL trade ideas
Vedanta Ltd.*Vedanta Ltd.*
Rouding Bottom Formation: Montly Basis
Price/Volume BreakOut. Addtionally, MultiYear Trendline BreakOut.
*With Increase in Price, Trail Stop Loss*
*Book Profit as per Your Risk Appetite*
*Fundamentally Stable Company*
A diversified resources company with interests in Zinclead-silver, oil and gas, aluminum, power, steel, copper, and iron ore. Also one of the largest resources company in India.
Benefits from ownership of low cost, cash rich oil & gas (Cairn)
and zinc-lead-silver (Zinc India) businesses
Increasing Sales / Profitability: Qtrly / Yearly Basis.
Moderate Leverage (Net debt stood at Rs. 27,576cr, with Net Debt-to-EBITDA ratio improving to 0.7x). +ve Cash Flows. Improvement in RoA / RoE / ROCE in FY21 over FY20.
Significant Promoter Holding: Incresed to 69.69% in Dec'21 from 65.18% in Sep'21. Dividend Paying Co.
Considering a potential restructuring of the overall mining operations. May include demerger and listing of its aluminum/iron/steel/oil/ gas businesses as separate standalone entities.
Concern:
Cash allocation.
Fall in commodity prices.
*Do Your Own Research as Well. This is Just an Opinion.*
Your Opinion may Differ and is Respected.
Happy Investing :)
VEDLNSE:VEDL
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VEDANTA LTD 1:4 PRICE ACTION SETUPNSE:VEDL broke out from a symmetrical triangle pattern after consolidating in it for 4 months.
Bullish signs:
Good breakout volume.
Very few wide range red candles inside the pattern.
Recent support from 30 week EMA.
Strong demand at the trendline indicates the possibility of price going higher.
Scrip has already given a 140% returns in the last year.
Wick on the breakout candle suggest there can be some consolidation before the momentum is released.
One can take a swing trade with a tight stoploss and aim for a 1:4 risk reward setup.
BEWARE, THE PROBABILITY OF THIS TRADE BEING SUCCESFULL IS ENITRELY DEPENDANT ON THE TREND OF NIFTY. IF NIFTY CONTINUES TO BE BEARISH, THE STOP LOSS WILL BE HIT WHETHER IT BE A TIGHT ONE OR A DEEP ONE.
One can just keep this stock on their watchlist instead of entering on the close.
Targets: 400/430/470+
Place tight sl below 330
Position size accordingly if an entry is taken. HAPPY TRADING!