Vedanta Ltd shares continued their upward march on Thursday, extending a sharp rally that has pushed the stock into overbought territory on technical charts. The stock has risen steadily over the past few weeks, outperforming both the benchmark indices and most metal peers, as strong volumes supported the move. Traders said the momentum remains intact despite signs of near term exhaustion.
On the charts, Vedanta is trading well above its key moving averages, with the relative strength index hovering in the high overbought zone. Such levels typically signal caution for short term players, but analysts tracking the stock said strong trends can stay overbought longer than expected. “As long as the price holds above key support levels, the broader trend remains positive,” a technical analyst at a Mumbai brokerage said.
The rally has been backed by a combination of stock specific and sector tailwinds. Investor sentiment improved after regulatory approvals cleared the way for Vedanta’s long planned demerger, a move expected to unlock value by splitting the business into focused verticals. Strength in global metal prices and optimism around demand have also supported buying interest in metal stocks, with Vedanta emerging as a preferred pick.
Fundamental investors point to the company’s cash flows and dividend history as key comfort factors. Recent quarters showed resilient operational performance despite volatility in commodity markets, helping ease concerns around debt. Market participants say expectations are now building around execution clarity and future listings post demerger.
Still, some caution is creeping in at current levels. Short term traders are watching for signs of profit booking after the steep run up, especially if broader markets turn volatile. For now, the trend remains firmly in favour of the bulls, with investors keenly tracking upcoming earnings updates and management commentary for the next directional cue.