Technical Momentum and Price Action Overview
Vedanta Ltd. closed at ₹695.40 on 25 Feb 2026, marking a 2.05% gain from the previous close of ₹681.40. The intraday range saw a low of ₹675.50 and a high of ₹698.80, indicating a relatively tight but upward-trending price band. The stock remains below its 52-week high of ₹770.00 but comfortably above its 52-week low of ₹362.20, reflecting a strong recovery and sustained bullish interest over the past year.
The technical trend has upgraded from mildly bullish to bullish, signalling increased buying momentum. This is supported by daily moving averages which remain bullish, suggesting that short-term price momentum is aligned with longer-term trends. The stock’s ability to maintain levels above key moving averages is a positive sign for continuation of the upward trajectory.
MACD and Momentum Oscillators
The Moving Average Convergence Divergence (MACD) indicator presents a compelling bullish case for Vedanta. Both weekly and monthly MACD readings are bullish, indicating that the stock’s momentum is gaining strength across multiple timeframes. The weekly MACD’s positive crossover suggests recent acceleration in buying interest, while the monthly MACD confirms a sustained upward trend over a longer horizon.
However, the Relative Strength Index (RSI) offers a more nuanced picture. The weekly RSI is bearish, signalling some short-term overbought conditions or potential consolidation phases. Conversely, the monthly RSI shows no clear signal, implying that the stock is not yet in an extreme condition on a longer-term basis. This divergence between weekly and monthly RSI readings suggests that while short-term traders might face some volatility, the broader trend remains intact.
Bollinger Bands and Volatility
Bollinger Bands on both weekly and monthly charts are bullish, indicating that Vedanta’s price is trending near the upper band, a sign of strong momentum and potential continuation of the rally. The expansion of Bollinger Bands also points to increasing volatility, which often accompanies significant price moves. Investors should monitor these bands closely for any signs of reversal or breakout confirmation.
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Moving Averages and Trend Confirmation
Daily moving averages for Vedanta are bullish, reinforcing the positive momentum seen in other technical indicators. The stock price consistently trading above its short-term and medium-term moving averages suggests strong support levels and a favourable risk-reward profile for investors. This alignment of moving averages typically precedes sustained rallies and reduces the likelihood of sharp corrections in the near term.
On the weekly scale, the Know Sure Thing (KST) indicator is bullish, further confirming momentum strength. However, the monthly KST is mildly bearish, indicating some caution for longer-term investors who may want to watch for potential trend shifts or consolidation phases.
Volume and Dow Theory Signals
On-Balance Volume (OBV) readings are bullish on both weekly and monthly charts, signalling that volume is supporting the price advances. This volume-price confirmation is a critical factor in validating the strength of the current uptrend. Conversely, Dow Theory analysis presents a mildly bearish weekly outlook and no clear monthly trend, suggesting that while price momentum is strong, broader market confirmation remains somewhat tentative.
Comparative Returns and Market Context
Vedanta’s recent returns have outpaced the benchmark Sensex significantly. Over the past week, Vedanta gained 4.09% compared to a 1.47% decline in the Sensex. The one-month return stands at 1.61% versus the Sensex’s 0.84%. Year-to-date, Vedanta has surged 15.15%, while the Sensex has fallen 3.51%. Over longer horizons, the stock’s performance is even more impressive, with a one-year return of 64.47% against the Sensex’s 10.44%, a three-year return of 136.13% versus 38.28%, and a five-year return of 239.72% compared to 61.92%. The decade-long return of 880.13% dwarfs the Sensex’s 256.13%, underscoring Vedanta’s strong growth trajectory within the Non-Ferrous Metals sector.
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Mojo Score and Analyst Ratings
Vedanta currently holds a Mojo Score of 68.0, placing it in the 'Hold' category, a downgrade from its previous 'Buy' rating as of 23 Feb 2026. This adjustment reflects a more cautious stance amid mixed technical signals and evolving market dynamics. The Market Cap Grade remains at 1, indicating a large-cap status with stable market capitalisation. The downgrade suggests that while the stock exhibits strong momentum, investors should weigh potential risks and monitor for any shifts in technical or fundamental factors.
Investor Takeaway and Outlook
The technical landscape for Vedanta Ltd. is characterised by a clear shift towards bullish momentum, supported by robust MACD, Bollinger Bands, moving averages, and volume indicators. However, the bearish weekly RSI and mildly bearish monthly KST, coupled with mixed Dow Theory signals, counsel prudence. Investors should consider these nuances when positioning themselves, especially given the stock’s strong relative performance against the Sensex over multiple timeframes.
For traders, the daily and weekly bullish signals offer opportunities to capitalise on upward price momentum, while longer-term investors may want to watch for confirmation of sustained trend strength before increasing exposure. The stock’s current price near ₹695.40, well above its 52-week low, suggests a resilient recovery phase, but the gap to the 52-week high of ₹770.00 leaves room for further upside if momentum persists.
Overall, Vedanta Ltd. remains a significant contender within the Non-Ferrous Metals sector, with technical parameters signalling a positive momentum shift. Yet, the mixed signals warrant a balanced approach, combining technical analysis with fundamental insights to optimise investment decisions.
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