Vodafone Idea shares snap 2-day fall, jump 7% today; here's why

Vodafone Idea shares snap 2-day fall, jump 7% today; here’s why

Vodafone Idea Ltd shares were up in Thursday’s trade, pausing their two-day downward move. Today’s sharp upward move came after Aditya Birla Group’s chairman said his group stays committed to Vodafone and its investors. Following the development, the stock climbed 7.05 per cent to hit a day high of Rs 16.40. At this price, the scrip has fallen 10.97 per cent from its one-year high price of Rs 18.42, a level seen earlier this year on January 1. Despite the mentioned fall, it has rallied 187.72 per cent compared to its 52-week low value of Rs 5.70, hit on March 31 last year.

“The company remains committed to Vodafone and its investors,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group.

Besides this, the telecom operator said it is considering raising funds through routes including a rights issue or a further public offer of shares. The company’s board will consider proposals for the fund raise on February 27, it added. The telco has been in talks for several months with lenders and investors to raise funds.

In a recent earnings call, Voda Idea CEO Akshaya Moondra mentioned that funding discussions are in progress with investors. Given the nature of these discussions, we will not be able to respond to any queries on this subject, he added.

Technical analysts largely remained ‘positive’ on the counter. Support could be seen around Rs 15 level.

“The stock has overall maintained the positive bias intact with near-term support at Rs 14.70. With resistance barrier near Rs 16.70 zone visible, it would need a decisive breach above to confirm a breakout and thereafter opening the targets of Rs 17.40 and 18.30, respectively,” said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

“Support will be at Rs 15 and resistance at Rs 16.60. A decisive close above Rs 16.60 level may trigger a further upside till Rs 18. Expected trading range will be between Rs 14 and Rs 19 for a month,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

“The stock looked strong on daily charts. It may see a upside target of Rs 17.50 in the near term. Support will be at Rs 15,” said DRS Finvest founder Ravi Singh.

As of December 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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