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Vedanta

Vedanta, short term opportunityMetal stocks have outperformed the sensex in the past year. The price of Vedanta has doubled in the past year and the stock is still showing strength. Recently the stock touched the yearly high of 240. Since the past few trading sessions the stock has dipped to 216 levels. This is a good price to enter this stock. The spinning top is indicative that the bear run may be near exhaustion. The A/D diverges with the price trend indicates the weakness in the current bearish pattern. Suggest buy at current levels with potential upside to 250 and stop loss at 200.
NSE:VEDLLong
by Nar
Metal Index Long term analysisMetal stocks have shown long term weakness with respect to BSE500, with support at 6000 levels. Another interesting point to note is that the index has short upward cycles but downward trends tend to drag out for 2 to 3 times the timelines of the upward trends, notable exception being the trend between 2005 and 2008. Both the MACD and the relative strength indices are beginning to show a reversal downward and the upward trend seems to be losing steam. Hence quite likely that downward movement will begin anytime between now and Feb. So this is a good time to go bearish on the metal futures.
MShort
by Nar