Vedanta Rs.91.8: The stock is in a downtrend across all time frames.
Nevertheless, after registering a multi-year low at Rs.76.7 in late August, the stock started moving sideways.
It continues to do so in a wide range between Rs.80 and Rs.110.
You can consider averaging the stock at the lower boundary with a stop-loss at Rs.75.
A strong breakthrough of the upper boundary at Rs.110 will pave way for an up move to Rs.130 and then to Rs.170 in the medium to long-term.
Having said that, a strong fall below the immediate support level of Rs.80 will strengthen the downtrend and drag the stock down to Rs.60 level or even to Rs.50 in the medium term. In such a scenario, exit the stock.
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