Here’s Why Vedanta Limited (VEDL) Stock Declined -4% Today

The biggest losers of the session on the Wall Street include Vedanta Limited (NYSE:VEDL), which fell -0.32 points or -4% to trade at $7.68 as last check. The stock closed last session at $8 and sets an active trading volume day with a reported 288397 contracts so far this session. VEDL shares had a relatively better volume day versus average trading capacity of 613.15 thousand shares, but with a 0.32 billion float and a 0.25% run over a week, it’s definitely worth keeping an eye on. VEDL share price has been trading recently between $8 and $8.09.

During the recent trading session for Vedanta Limited (NYSE:VEDL), the company witnessed their stock drop by $-0.48 over a week and tumble down $-1.21 from the price 20 days ago. When compared to their established 52-week high of $11.84, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 12/19/18. The recent low of $7.04 stood for a -35.13% since 08/22/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.32 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Vedanta Limited, the two-week RSI stands at 37.11. This figure suggests that VEDL stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current VEDL readings is similarly very revealing as it has a stochastic reading of 17.93% at this stage. This figure means that VEDL share price today is being overbought.

Technical chart claims that Vedanta Limited (VEDL) would settle between $8.06/share to $8.12/share level. However, if the stock price goes below the $7.97 mark, then the market for Vedanta Limited becomes much weaker. If that happens, the stock price might even plunge as low as $7.94 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.08. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Citigroup raised their recommendation on shares of VEDL from Neutral to Buy in their opinion released on May 21. HSBC Securities analysts have lowered their rating of Vedanta Limited (NYSE:VEDL) stock from Buy to Hold in a separate flash note issued to investors on March 29. Analysts at Goldman lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to February 01.

Moving on, VEDL stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 9.5 while for the average stock in the same group, the multiple is 15.7. Vedanta Limited current P/B ratio of 0.8 means it is trading at a discount against its industry’s 2.