Vodafone Idea shares settle 6% higher after picking up pace in fag-end trade; key tech levels to watch

Shares of Vodafone Idea Ltd (VIL) on Thursday resumed climb, snapping their two-day losing run. The stock, which gained momentum in the fag-end trade, settled with 5.79 per cent gains at Rs 16.81. At this price, the scrip was down 9.58 per cent from its recent one-year high of Rs 18.42, a level seen on the first trading day of calendar year 2024 (January 1). Despite the mentioned drop, the multibagger counter has rallied 113.60 per cent in the past one year. That said, it has gained 23.33 per cent in last five sessions.

VIL, in a post-market hours filing today, said it has received a tax order to pay Rs 10.77 crore as penalty. "The company does not agree with the order and will take appropriate legal action(s) for rectification/ reversal of the same," it underscored.

Separately, the Indian telecom operator has recently denied a news report of tie-up talks with billionaire Elon Musk's satellite internet unit Starlink.

In response to a BSE query on a report titled "Elon's Starlink Tie-Up Talks In Market Pumps Vodafone Idea To The Skies In India", the telco said, "It is not in any such discussion with the named party. We are not aware of the basis of the said news item."

On technical setup, the counter may face strong resistance at the Rs 19-21 zone. Support could be seen at Rs 15 level.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 15 and resistance at Rs 19. Expected trading range will be between Rs 14 and Rs 22 for a month."

AR Ramachandran from Tips2trades said, "Vodafone Idea is bullish on daily charts with next resistance at Rs 21. Investors should book profits at current levels."

DRS Finvest founder Ravi Singh said, "The stock has resistance around Rs 20. Support will be at Rs 15."

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 69. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As of September 2023, promoters held 50.36 per cent stake in the company.

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

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