Analysts Suggest Strategies for Trading Vedanta Stock Ahead of Demerger
How to trade Vedanta stock ahead of demerger record date? Analyst decodes
Business Standard
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Vedanta's share price has decreased nearly 5% from its peak of ₹795 on April 21, 2026, currently trading around ₹759. Analysts suggest support levels at ₹740 and ₹730, with a potential breakout target of ₹820-825 following the company's upcoming demerger on May 1, which will create five separate entities.
- 01Vedanta's stock price dipped nearly 5% from its lifetime high of ₹795.
- 02Amol Athawale from Kotak Securities indicates a positive short-term outlook despite recent profit booking.
- 03Key support levels are identified at ₹740 and ₹730, with resistance at ₹800.
- 04Shareholders will receive shares in four new companies as part of the demerger effective May 1.
- 05Analysts expect the demerger to unlock value, particularly in Vedanta's Aluminium and Power sectors.
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Vedanta's share price has recently declined by nearly 5%, falling from its lifetime high of ₹795 on April 21, 2026, to around ₹759. Amol Athawale, Vice President of Technical Research at Kotak Securities, notes that the stock is experiencing profit booking after a substantial rally, although its short-term outlook remains positive. The stock has surged nearly 30% from a low of ₹615 on March 23, 2026. Athawale identifies ₹740 and ₹730 as crucial support levels, while a breakout above ₹800 could see the stock rise to ₹820-825. Additionally, Vedanta has set May 1 as the record date for its demerger, which will result in shareholders receiving shares in four new companies: Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel. Analysts are optimistic about the demerger, particularly regarding its Aluminium and Power businesses, with ICICI Securities highlighting the potential for significant revenue and margin growth. Kotak Institutional Equities maintains a 'Buy' rating on Vedanta with a target price of ₹915 per share.
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The demerger is expected to create value for shareholders by separating Vedanta's diverse business operations, potentially leading to better performance and growth in the Aluminium and Power sectors.
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