Shares of Vodafone Idea Ltd have gained more than 112 per cent in the past six months and 127 per cent in a year. The stock was last seen trading 1.07 per cent higher at Rs 16.08 on Monday. At this price, it has slipped 12.70 per cent from its one-year high value of Rs 18.42, a level seen on January 1 this year.
In response to a query on promoter funding, Voda Idea CEO Akshaya Moondra had said, “We had made this disclosure in August, around the time of the last results that the promoters will provide direct or indirect financial support to the company for meeting the impending payment obligations and that commitment still stays. They are committed ultimately to provide this as equity funding. But that will be as things stand now, let’s see, and will be a part of the overall equity raise. However, that support is available in case the company needs it necessarily for meeting its impending obligations.”
Funding discussions are in progress with investors and given the nature of these discussions, we will not be able to respond to any queries on this subject, he added.
“Let’s say if we are launching 5G in six to seven months’ time, then probably we will have a better idea of what is happening on the monetization front. After funding is there, we will need some time to roll out, let’s say, six to seven months and once that happens, by then the monetization will be clearer than it is today, and our strategy will be based on that,” Moondra had stated on 5G deployment.
On technical setup, the counter looked positive on charts. Support on the counter could be seen at Rs 15.55-14.50 levels.
“The stock has gained significantly in the last five months with series of higher lows formation. After making a low near Rs 13.60 level, it has once again witnessed a decent pullback. With support maintained near Rs 14.50 and overall trend maintained positive, one can expect for a further rise,” said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
Next potential upside targets would be Rs 17.60-Rs 19.80 levels, Koothupalakkal mentioned.
“Support will be at Rs 15.80 and resistance at Rs 16.60. A decisive close above Rs 16.60 level may trigger a further upside till Rs 17.5. Expected trading range will be between Rs 15 and Rs 18 for a month,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
Vodafone Idea is bullish on daily charts with strong resistance at Rs 16.55 said AR Ramachandran from Tips2trades. “A closing above the said resistance could lead to Rs 17.8 in the near term. Support will be at Rs 15.55,” he added.
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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