Vedanta Ltd. Technical Momentum Shifts Amid Mixed Indicator Signals

Current Price Action and Market Context

As of 10 Feb 2026, Vedanta Ltd. closed at ₹679.90, marking a 1.37% increase from the previous close of ₹670.70. The stock traded within a range of ₹671.05 to ₹685.95 during the day, remaining comfortably below its 52-week high of ₹770.00 but well above the 52-week low of ₹362.20. This price movement underscores a resilient recovery phase, supported by broader market dynamics and sectoral demand.

Comparatively, Vedanta’s returns have outpaced the Sensex across multiple time horizons. Over the past week, the stock returned 2.86%, closely tracking the Sensex’s 2.94%. However, over one month, Vedanta surged 11.48% against the Sensex’s modest 0.59%. Year-to-date, Vedanta has gained 12.58%, while the Sensex declined by 1.36%. The stock’s one-year return stands at an impressive 49.25%, significantly outperforming the Sensex’s 7.97%. Longer-term returns further highlight Vedanta’s robust performance, with 3-year, 5-year, and 10-year returns at 119.25%, 274.39%, and 874.77% respectively, dwarfing the Sensex’s corresponding returns of 38.25%, 63.78%, and 249.97%.

Technical Indicator Analysis: Mixed Signals Emerge

Vedanta’s technical trend has shifted from bullish to mildly bullish, signalling a cautious optimism among traders and investors. The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly charts, suggesting that the underlying momentum is still positive. The MACD’s sustained bullishness indicates that the stock’s price momentum is supported by strong buying interest over medium and longer-term periods.

Conversely, the Relative Strength Index (RSI) presents a more nuanced picture. The weekly RSI has turned bearish, implying that short-term momentum may be weakening and the stock could be entering an overbought or corrective phase. The monthly RSI, however, remains neutral with no clear signal, reflecting a balanced momentum over the longer term. This divergence between weekly and monthly RSI readings suggests that while short-term traders might exercise caution, the broader trend remains intact.

Bollinger Bands reinforce this mixed outlook. On a weekly basis, the bands are bullish, indicating that price volatility is supporting upward movement. The monthly Bollinger Bands are mildly bullish, signalling moderate upward pressure but with less conviction than the weekly timeframe. This aligns with the overall mildly bullish trend shift.

Moving Averages and Other Momentum Indicators

Daily moving averages continue to support a bullish stance, with the stock price trading above key averages such as the 50-day and 200-day moving averages. This technical positioning often acts as a foundation for sustained upward momentum, attracting institutional interest and reinforcing investor confidence.

The Know Sure Thing (KST) indicator adds further complexity. It remains bullish on the weekly chart but has turned mildly bearish on the monthly chart. This split suggests that while short-term momentum remains positive, longer-term momentum may be losing steam, warranting close monitoring for potential trend reversals.

Other technical tools such as Dow Theory and On-Balance Volume (OBV) show no definitive trend on either weekly or monthly charts. The absence of clear directional signals from these indicators suggests that volume and price trend confirmations are currently inconclusive, adding to the cautious tone.

Mojo Score and Rating Update

MarketsMOJO assigns Vedanta Ltd. a Mojo Score of 68.0, reflecting a Hold rating as of 09 Feb 2026. This represents a downgrade from the previous Buy rating, signalling a more cautious stance amid the evolving technical landscape. The downgrade aligns with the shift from a bullish to mildly bullish trend and the mixed signals from momentum indicators. The Market Cap Grade remains at 1, indicating a large-cap status but with limited recent upward momentum acceleration.

Implications for Investors and Traders

The technical momentum shift suggests that while Vedanta Ltd. retains underlying strength, short-term traders should be vigilant for potential pullbacks or consolidation phases. The bullish MACD and moving averages support a positive medium-term outlook, but the bearish weekly RSI and mildly bearish monthly KST caution against overextension.

Investors may consider monitoring key support levels near ₹670 and resistance around ₹685-₹690, which have recently defined intraday price action. A sustained break above the upper Bollinger Band and 52-week high of ₹770 could reignite stronger bullish momentum, while a drop below the 50-day moving average might signal deeper corrections.

Vedanta’s strong historical returns relative to the Sensex, particularly over the 1-year (49.25% vs 7.97%) and 5-year (274.39% vs 63.78%) periods, underscore its long-term growth potential. However, the recent technical caution advises a balanced approach, favouring partial profit booking or hedging strategies for risk-averse investors.

Sector and Industry Context

Vedanta operates within the Non-Ferrous Metals industry, a sector often influenced by global commodity cycles, currency fluctuations, and geopolitical factors. The recent technical signals may also reflect broader sectoral volatility, as investors weigh demand prospects against inflationary pressures and regulatory developments.

Given the sector’s cyclical nature, technical momentum shifts in Vedanta could presage similar movements in peer stocks, making it imperative for investors to maintain a diversified portfolio and stay attuned to macroeconomic indicators.

Conclusion: Balanced Outlook with Tactical Vigilance

Vedanta Ltd.’s technical momentum shift to mildly bullish, combined with mixed indicator signals, suggests a phase of consolidation and selective opportunity. While medium-term momentum remains constructive, short-term caution is warranted due to bearish RSI and KST signals. The downgrade to a Hold rating by MarketsMOJO reflects this tempered optimism.

Investors should closely monitor price action around key moving averages and Bollinger Bands, while considering the stock’s strong historical outperformance relative to the Sensex. Tactical adjustments, including profit booking and alternative stock evaluations, may enhance portfolio resilience amid evolving market conditions.

Overall, Vedanta Ltd. remains a significant large-cap contender in the Non-Ferrous Metals sector, but the current technical landscape advises a measured approach to capital allocation and risk management.

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