Vodafone Idea shares jump 8% today; here's what technical analysts say

Shares of telecom operator Vodafone Idea Ltd rose sharply in Wednesday's trading session. The stock surged 8.40 per cent to hit a day high of Rs 12 over its previous close of Rs 11.07. The scrip has zoomed more than 90 per cent in the past six months. On BSE, around 11.16 crore shares changed hands today. This was way more than the two-week average volume of 4.67 crore shares. Turnover on the counter stood at Rs 130.62 crore, commanding a market capitalisation (m-cap) of Rs 57,539.39 crore.

On technical setup, support on the counter could be seen at Rs 10.55. And, near-term resistance is likely around Rs 12.50 level.

DRS Finvest founder Ravi Singh said, "The stock has recovered after the Supreme Court agreed to hear Adjusted Gross Revenue (AGR) dues plea. In this momentum, it may touch Rs 12.50 in the near term." The telecom operator said it has already written to the Department of Telecommunication (DoT) "to correct the errors in license fee demands up to financial year 2016-17." It also mentioned that the DoT has not acted on the matter yet.

AR Ramachandran from Tips2trades said, "Vodafone Idea looks bullish on the daily charts with strong support at Rs 10.55. A daily close above resistance of Rs 12.55 could lead to target of Rs 13.8 in the near term."

Sameet Chavan, Chief Analyst - Technical & Derivatives at Angel One, said, "As far as levels are concerned, Rs 12.50 should be seen as immediate hurdle. On the flipside, the cluster of supports is clearly visible around Rs 10.50-9.50."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has support near Rs 10.55. A decisive breach above Rs 12.50 is required to confirm a breakout and anticipate a further rise with expected higher targets between Rs 14 and Rs 16.50 levels."

Kush Ghodasara, Independent Market Expert, CMT, said, "Technical indicators have turned bullish, signaling a fresh buy for short term with a target price of Rs 13.35. Keep stop loss placed at Rs 11.10."

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 61.56. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a one-year beta of 0.93, indicating low volatility.

 

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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