VEDL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📊 Analysis Summary

Vedanta Ltd (VEDL) presents a mixed swing trade setup — strong fundamentals and high dividend yield are offset by weak technical indicators and high leverage. The stock is near its 200 DMA and shows signs of consolidation, making it a moderate-risk swing trade with potential upside if momentum improves.

✅ Strengths

P/E: 12.4 vs Industry PE: 42.6

Deeply undervalued — attractive for short-term re-rating.

EPS: ₹38.3 & ROE: 38.5%

Strong profitability — supports price stability.

ROCE: 25.3%

Efficient capital usage — quality operations.

Dividend Yield: 9.90%

High yield — adds cushion to downside risk.

Quarterly PAT Growth: +142%

Massive earnings jump — could trigger sentiment shift.

Trading near DMA 200 (₹437)

Potential support zone — watch for bounce.

⚠️ Weaknesses

MACD: –1.79 & RSI: 43.1

Weak momentum — no clear bullish signal yet.

PEG Ratio: –1.21

Negative PEG — poor growth outlook.

Debt to Equity: 2.22

Highly leveraged — financial risk in volatile markets.

FII Holding ↓ 0.55%

Foreign investors reducing exposure.

Volume: 33.7L vs Avg 36.6L

Slightly below average — low conviction.

Book Value: ₹105 vs CMP ₹440

High premium — not ideal for value entry.

🎯 Optimal Entry Price

Entry Zone: ₹430–₹435

Near 200 DMA — wait for RSI to cross 50 and MACD to flatten.

Confirmation: Look for volume spike and MACD crossover.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹465–₹475

Near resistance zone — good level to book profits.

Stop Loss: ₹420

Below recent support — protects against breakdown.

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