Vodafone Idea shares up over 51% in a month; here's what technical charts indicate

Shares of telecom operator Vodafone Idea Ltd have gained more than 51 per cent in the past one month. The stock on Friday jumped 9.63 per cent to hit a 52-week high price of Rs 11.95. At this price, the counter has rallied 109.65 per cent from its one-year low price of Rs 5.70, a level seen on March 31, 2023.

The telecom operator has been in the focus lately over equity funding expectations. Vodafone Idea CEO Akshaya Moondra, in an earnings call, said discussions with multiple groups of investors on both equity and equity-linked instruments have progressed in the last couple of months. We are making good progress, and we expect to conclude these discussions in the coming quarter, Moondra added.

He also mentioned that funding arrangements are expected to be concluded in the coming quarters. "And once that happens, then we will be able to continue our investments," Moondra further stated.

Bourses BSE and NSE have put the securities of Voda Idea under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

On technical setup, analysts believe the counter may find resistance around Rs 12 level.

AR Ramachandran from Tips2trades said, "The stock has resistance around Rs 11.80. Investors should be booking profits at current levels."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support on the counter could be seen around Rs 9, followed by Rs 8.5 and resistance is expected near Rs 12.

The counter traded 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 74.44. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 1.78 against a negative price-to-book (P/B) value of 0.70.

The scrip has a one-year beta of 0.96, indicating average volatility on the counter.

On BSE, around 17.17 crore shares changed hands today. This was way more than the two-week average volume of 8.93 crore shares. Turnover on the counter stood at Rs 199.88 crore, commanding a market capitalisation (m-cap) of Rs 56,857.88 crore.

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