VEDL - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.1

🪨 VEDL (Vedanta Ltd.) Swing Trade Analysis

VEDL presents a solid swing trade opportunity with strong fundamentals, attractive valuation, and improving technical momentum. While institutional sentiment is mixed and growth metrics are soft, the setup favors a short-term bullish move.

✅ Strengths

Valuation & Earnings

P/E: 11.8 vs Industry PE: 49.4 — significantly undervalued.

EPS: ₹49.8 — strong earnings base.

Dividend Yield: 9.55% — excellent income support.

ROCE: 18.5% / ROE: 21.8% — strong capital efficiency.

Quarterly PAT Surge: ₹1,504 Cr. → ₹3,927 Cr. — robust earnings rebound.

Technical Indicators

MACD: 4.18 — bullish crossover, indicating upward momentum.

RSI: 58.7 — healthy zone, with room to rise.

Price Above DMA 50 & 200: Current price ₹456 is above DMA 50 (₹442) and DMA 200 (₹438), confirming trend strength.

Volume Support: Healthy trading activity, though slightly below 1-week average.

⚠️ Risks

PEG Ratio: -2.93 — negative, suggesting growth doesn’t justify valuation.

FII Sentiment Negative: Foreign institutions reduced holdings by 0.55%.

Debt-to-Equity: 0.76 — moderate leverage.

52W Index: 56.7% — mid-range, indicating partial recovery.

Quarterly Profit Variation: -6.13% — slight contraction despite high PAT.

🎯 Trade Strategy

Optimal Entry Price: ₹450–₹455

Enter near 50 DMA for a low-risk setup with technical support.

Exit Plan (If Holding)

Target Exit: ₹480–₹495

Conservative target near short-term resistance.

Stop Loss: ₹440

Below 50 DMA to manage downside risk.

VEDL is a strong swing candidate for traders seeking value, yield, and momentum. Let me know if you’d like to track this setup or compare it with other metal and mining stocks.

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