Vedanta - May Take 1 Week Pause

Vedanta saw a cash volume of 18.50 crore shares on Wednesday, learnt to have been bought by the Promoters, to raise their stake by about 5% via creeping acquisition route of this FY. Vedanta has intimated of Facility Agreements entered into, for US $ 800 million,(Rs.6,000 crores) having money disbursed by Standard Chartered Bank. This amount may have been partly used to buy 5% stake or may be used for redemption of ADR , if required, by 8th December.   However, cash volume shrunk yesterday to 93 lakh shares only.

ADR Delisting will get completed by 8^th December, by which, either ADR will be converted in shares or payment will be made in cash, to ADR holders, not keen to opt for conversion. Also, 5% acquisition is already made by the Promoters, has seen stock now partly moved in an overbought zone, while longs may get rolled over by the weak hands in the next series as well.

Hence, there may be some halt on buying or frenzy getting cooled till Wed 8^th December, where volatility to be seen in the stock, may see it falling to 325 levels as well. But short, medium and long term view on the stock remains extremely positive or say bullish. Hence, one can book at 350-355 levels to buy t again at 325-330 levels, after a week or 10 days, to see the second round of buying after 9^th December.

Low float and stake sale in PSUs by the Govt, with finacial bids likely  to get invited for BPCL in next month, will bring in new bullish sentiments in the stock.

This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.