As PSBs put Voda Idea loan on hold, will the stock drop below Rs 10?
Source: Business Standard
Vodafone Idea stock is on investor’s radar amid reports that public sector banks (PSBs) are hesitant to provide fresh lending to the cash-strapped telecom firm.
Recently, foreign brokerage Goldman Sachs flagged a ‘Sell’ call on Voda Idea with a base case target of Rs 2.5. Goldman said the company’s recent fundraise is positive but may not be adequate to stem its market share erosion.
On Wednesday, Voda Idea stock was trading with a gain of 0.6 per cent at Rs 13.61. The stock had hit a high of Rs 13.75 and a low of Rs 13.43 so far in the day, amid a volatile movement on the benchmark indices, the Sensex and the Nifty which were seen gyrating between zones.
Given these negative flows at the counter, will Voda Idea stock drop back to single-digits? Here are the key levels to track as per the technical charts.
Vodafone Idea
Current Price: Rs 13.61
Downside Risk: 33.1%
Support: Rs 13.20; Rs 12.20; Rs 11.80; Rs 11.10
Resistance: Rs 14.70; Rs 15.20; Rs 15.40
On the daily scale, the stock is seen attempting a pullback following last week’s sharp sell-off. The stock has moved within the Bollinger Bands, and may now expect some support around Rs 13.20 levels. Similarly, the weekly chart shows presence of strong support for the stock around Rs 12.20, which the super trend line. Break and sustained trade below the same can trigger a fall towards 200-WMA (weekly Moving Average), which stands at Rs 10.50; with interim support likely around Rs 11.10.
Among the key momentum oscillators, the RSI (Relative Strength Index) has shown a negative crossover on the monthly scale, but MACD remains positive. Thus, indicating a likely phase of consolidation in the near term. The key support stands at Rs 11.80 – its 20-MMA (Monthly Moving Average) followed by the 50-MMA at Rs 10.40. Only, in case, the stock breaks below these levels could it slide all the way into single-digit to Rs 9.10 levels.
In case of a pullback, the 200-DMA at Rs 14.70 followed by the 100-DMA at Rs 15.20 are likely to act as immediate hurdles. In order for the sentiment to revive at the counter the stock will need to break and sustain above Rs 15.40 levels.
First Published: Sep 11 2024 | 10:52 AM IST
