Vodafone Idea share price doubles in just 7 days, gains 20% today; should you buy this stock now?

Vodafone Idea has witnessed a spectacular rally in June itself, up by almost 70% post the news that global tech giant Google is in talks for buying a 5% stake

Vodafone Idea share price today rallied 20 per cent to Rs 12.62 apiece on BSE, nearing its 52-week high of Rs 13.55. The stock has surged over 116 per cent from Rs 5.83 to Rs 12.62 in just seven trading sessions. According to the BSE data, with a market capitalisation of Rs 30229.63 crore, Vodafone Idea has climbed up to 91st position from 100th last week in the overall m-cap ranking. In the past one month, Vodafone Idea share price has vaulted over 200 per cent from Rs 4.17 to today’s intraday high. Analysts advise investors to proceed with caution while investing in the stock. “The stock seems to all of a sudden, have become most sought after by investors but post such superlative price performance, fresh entry should be viewed with caution,” Aamar Deo Singh, Head Advisory at Angel Broking told Financial Express Online.

Around 11.30 am, Vodafone Idea shares were trading at Rs 11.44 apiece with a gain of 8.75 per cent in Monday’s strong session, as compared to a 1.41 per cent rise in S&P BSE Sensex. “Vodafone Idea has gained over 100% in the last 10 trading sessions and it is a good time to book profits in this stock now,” Amit Gupta, Cofounder Tradingbells, told Financial Express Online. “The stock has become overheated and we can expect some consolidation coming on the back of profit booking in the coming days, as Reliance Jio continues to attract investor interest within the telecom sector,” Amit Gupta added. He further added saying that a similar trend was observed in Bharti Airtel where it consolidated after reaching close to its 52-week high two weeks ago, and corrected almost 7% within the next few days.

The sharp rally in the Vodafone Idea stock in the last few days has been propelled by the reports that suggested Google is in talks to invest in the company for a 5 per cent equity stake. However, Vodafone Idea on May 29, clarified that as part of corporate strategy, the company is constantly evaluating various opportunities for enhancing the stakeholders’ value. “Vodafone Idea has witnessed a spectacular rally in June itself, up by almost 70% post the news that global tech giant Google is in talks for buying a 5% stake,” Aamar Deo added. “Technically, the stock has resistance around the 13-15 zone, where profit booking could be witnessed,” he added.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.