Vodafone Idea share price jumps 5% from intraday low; can it rise more?
Vodafone Idea share price saw a significant recovery on December 13, rising up to 5 per cent from an intraday low of ₹7.68, despite market volatility.
Vodafone Idea share price staged a sharp recovery during intraday trading on Friday, December 13, surging up to 5 per cent from its intraday low of ₹7.68, despite a volatile market environment. Vodafone Idea share price opened at ₹7.83 against its previous close of ₹7.87 and fell over 2 per cent to the level of ₹7.68. The telecom stock, however, recovered swiftly and jumped to the level of ₹8.07. Finally, the stock closed 1.52 per cent up at ₹7.99 apiece.
Vodafone Idea news
Vodafone Idea shares jumped after the company disclosed the details of an investor presentation, highlighting four key strategies for the company's future growth.
In an exchange filing during market hours on December 13, the company said a competitive and adequate spectrum will fuel its growth. It said it has sufficient spectrum to support the migration of entire 4G subscribers to 5G.
It said it is among the top 10 cellular operators globally by subscribers in a single country of operations and is the third largest in India.
The company believes the digital revolution in India offers substantial growth opportunities.
Here are the four key strategies that Vodafone Idea highlighted in its investor presentation:
1. Focused network investments to drive coverage and capacity expansion.
2. Market initiatives to drive ARPU improvement and customer retention.
3. Focus on business services through telco-to-techco transformation.
4. Strategic collaborations to monetise digital opportunities.
Vodafone Idea share price trend
At the current market price of ₹7.99, Vodafone Idea shares are down 50 per cent year-to-date (YTD). On a monthly scale, the stock is down 4 per cent in December so far after a 3 per cent gain in November. It hit a 52-week high of ₹19.15 on June 28 before hitting a 52-week low of ₹6.60 on November 22 this year.
Can the stock rise from here?
Experts do not appear positive about the stock as they point out weaknesses on charts.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, Vodafone Idea is currently exhibiting significant weakness in its technical structure, as it trades below crucial levels like the 200-day exponential moving average (DEMA) and the Ichimoku Cloud.
These technical indicators are commonly employed to gauge market sentiment and trends, and their current readings highlight persistent bearish momentum and selling pressure. The 200 DEMA, which serves as a key benchmark for long-term trend analysis, suggests negative sentiment when the stock trades consistently below it. Additionally, trading beneath the Ichimoku Cloud further reinforces a bearish outlook, indicating weak upward momentum and a lack of robust support levels.
Patel further observed that the Relative Strength Index (RSI) has recently exhibited bullish divergence, leading to a modest 2.5-point recovery from its recent bottom. However, this positive development is overshadowed by the stock’s position below the Ichimoku Cloud, which remains a bearish signal and underscores the broader weakness in the stock's technical setup.
"Given the prevailing bearish trend, the weak momentum indicators, and the lack of convincing signals for a sustainable reversal, it is prudent to avoid initiating long positions in the Vodafone Idea at this point. Patience and caution are recommended until clear signs of strength and a potential trend reversal emerge," said Patel.
Mandar Bhojane, an equity research analyst at Choice Broking, pointed out that the stock has rebounded from its recent low of ₹6.67 and is consolidating near a key support level of ₹7, indicating a bearish undertone.
"On the upside, immediate resistance is observed at ₹8.5 and ₹9, where selling pressure is anticipated. A decisive breakout above these levels is required for further bullish momentum," said Bhojane.
"The RSI (Relative Strength Index) stands at 48 and is trending upward, suggesting a possible short-term bounce toward ₹8.5 or ₹9. Traders could consider booking profits around these levels. However, the medium- to long-term outlook for the stock improves only on a breakout above ₹10 and ₹11, which could pave the way for upside targets of ₹13 and ₹15. Until then, the stock remains range-bound with limited upward potential," Bhojane said.
Read all market-related news here
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High