Technical Analysis: Vedanta, Bandhan Bank, Dodla Dairy

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I have shares of Vedanta Ltd. My average purchase price is ₹300. What is the long-term outlook for this stock? I can hold the stock for another year. Should I continue to hold or exit?

Mahesh, Bengaluru

Vedanta Ltd (₹256): The stock was in a downtrend since mid-April 2022. But the recent rise above ₹245 gives an early sign of a trend reversal. The bounce from the low around ₹208 has happened from around the 200-Month Moving Average. There is a complex inverted head and shoulder formation visible on the weekly chart. All these factors strengthen the case for a trend reversal. Immediate resistance is at ₹275. A decisive break above it will boost the bullish momentum. Such a break can take Vedanta share price up to ₹350-370 over the next two-three quarters.

A further break above ₹370 will then open the doors for Vedanta share price to target ₹420 over the next one year or so. Hold the stock. Keep a stop-loss at ₹190. Revise the stop-loss up to ₹290 when the price moves up to ₹350. Move the stop-loss further up to ₹370 when Vedanta share price goes up to ₹390. Exit the stock at ₹420. Strong support is in the ₹220-200 region. The bullish view will go wrong only if the stock declines below ₹200. In that case, Vedanta share price will come under pressure for a fall to ₹100 and even lower.

What is the outlook for Bandhan Bank?

Mangesh Sri

Bandhan Bank (₹241): The broader trend is down for the stock. Within that, the stock has been stuck in a sideways range for more than a year; ₹180-275 has been the trading range since October 2022. Unless the stock breaks out on either side of this range, the outlook will remain unclear. A strong break above ₹275 can take Bandhan Bank share price up to ₹300-310. However, for the long-term downtrend to reverse, the stock has to get a sustained rise past ₹310.

Only in that case, the chances of rising back to ₹400-500 and higher levels will come back into the picture. On the other hand, the stock will come under more selling pressure if it declines below ₹180. In that case, the stock can tumble towards ₹150-140. For now, the ₹180-275 range is intact. It is better to stay out of this stock rather than getting trapped inside the range.

What is the outlook for Dodla Dairy? Can I buy the shares at the current levels? If yes, what will be the trading strategy to be followed? Please advise.

Vishal, Vijayawada

Dodla Dairy (₹877): The trend is up since March 2023. Immediate support is around ₹820. Below that, ₹760 is a much lower support. Resistance is around ₹970 which can be tested if the stock sustains above ₹820 for now. A corrective fall from around ₹970 towards ₹860 cannot be ruled out. But an eventual break above ₹970 will boost the bullish momentum. Such a break can take Dodla Dairy share price up to ₹1,100 over the long term.

If you are a long-term investor with a minimum holding time period of one year, then you can consider buying this stock. Buy now and accumulate at ₹830 and ₹780. Keep a stop-loss at ₹740. Trail the stop-loss up to ₹930 as soon as the stock moves up to ₹990. Move stop-loss further up to ₹1,010 when the price touches ₹1,050. Exit the stock at ₹1,080.

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