NEW DELHI: Shares of Vodafone Idea (Vi) surged 20% intraday to Rs 13.25 on Wednesday amidst overall recovery in the stock market and decision by three leading telecom players to hike tariffs by around 20-30%. The stock at its intraday high was trading in the vicinity of its 52-week high of Rs 13.80 (January 2021) and thrice the value of its 52-week low of Rs 4.55. It closed the Wednesday session 14% higher at Rs 12.67. According to an equity market analyst, the stock may see more buying in the short to medium term.
“On the Daily chart company have made Cup and Handle formation and the neckline breakout has been done today with good volumes,” said Gaurav Garg, Head of Research, CapitalVia Global Research
“The immediate target of this break out is Rs 15.10. On longer term chart Rs 15.50 is the resistance level and above it will go towards Rs 18.50 levels,” Garg added.
He also mentioned that the company’s announcement that it won an international arbitration case against the Indian government, ending one of the most high-profile disputes in the country involving a $2 billion tax claim, news in the market that some banks from Middle East are going to invest in the Idea and hikes in tariff are big boosts for the stock.
The stock of the debt-laden telco had a major fall in August this year after Kumar Mangalam Birla stepped down as non-executive director and non-executive chairman of the company amidst concerns around its survival in the Indian market.
The overall equity market too witnessed some recovery on Wednesday after a disastrous last week.
At close, the BSE Sensex was up 619.92 points or 1.09% at 57,684.79, and the Nifty was up 183.70 points or 1.08% at 17,166.90. The BSE midcap and smallcap indices climbed up to 1%.
