Vodafone Idea has climbed up to 80th position, with a market capitalisation of Rs 34453.73 crore in the overall m-cap ranking, according to BSE data.
Vodafone Idea share price has been on a bumpy ride for the last couple of days. After doubling up in just 7 trading sessions, telecom service provider Vodafone Idea stock plunged as much as 21.5 per cent to hit the intraday’s low of Rs 9.41. Vodafone Idea stock ended the session 16 per cent lower at Rs 10.08 apiece on BSE. As on June 8, Vodafone Idea has climbed up to 80th position, with a market capitalisation of Rs 34453.73 crore in the overall m-cap ranking, according to BSE data. As the stock witnessed a sudden surge in the price in the past few days, analysts have advised to exercise caution. “Vodafone Idea is going through the bull trend correction. It needs a healthy correction to continue its uptrend,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online. “This correction can be 50% to 61.80% of last up move from 3 to 12.50, therefore, we are expecting it to correct till 8 to 7,” Wagh added.
The sharp rally which was witnessed in the stock was fuelled 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. “One should do entry only near to 8 to 7 levels. Currently, it is very overbought and the rally is exhausted,” Wagh said.
Short-medium term trend bullish for Vodafone Idea
Technical charts suggest short-medium term trend bullish for Vodafone Idea stock ahead. “On the short to medium term chart, the stock has observed a shift of trend to the upside as it has formed higher Top and higher Bottom indicating bullish sentiments ahead,” Rajesh Palviya, Head Technical & Derivatives, Axis Securities, told Financial Express Online. “From current levels, the immediate short term support zone is around 8-7 levels. On the upside expected range to test 18-20 levels in the next 2-3 months. Any corrections toward the support zone will remain as a buying opportunity,” Palviya added.
Foreign brokerage Jefferies in its research report said that Vodafone Idea is unlikely to be a potential price disruptor in the Indian telecom sector as it is already facing cash flow pressures driven by huge debt and AGR liabilities.