Sudip Bandyopadhyay discusses the underinvestment in metals, the increasing demand due to infrastructure projects, the impact of China and global factors, and the potential for Vedanta stocks with a target price of Rs 500+. In the short-term, he is looking forward to a 10% upside from here on as well.
Vedanta Ltd has rallied over 20% in the last 3 months, breaking out from a falling trendline pattern. Short-term traders can buy the stock now, with a target of Rs 295-300 in 4-6 weeks. The stock rose from Rs 227 to Rs 274 in 3 months, and it has risen over 9% in a month. After a price-wise correction, the stock found support above the 200-week moving average and hit a 52-week high of Rs 340. It is now trading above crucial short- and long-term moving averages, with a bullish momentum.