Stocks to Watch - Vodafone Idea shares down 3%; chart looks positive, hold for these levels, say analyst

Stocks in Focus – Vodafone Idea – Shares of Vodafone Idea Limited were trading down 3.9 per cent on the NSE on Wednesday. The shares were trading at Rs 11.10 at 10:50 am. The stock has gained over the last three trading sessions before seeing some correction on Tuesday. The correction continued even on Wednesday.

Meanwhile, the exchanges have sought clarification from Vodafone Idea with respect to recent news item captioned ‘Revival plans: Promoters may invest Rs 10,000 crore in Vodafone Idea, says govt’. The response from the Company was awaited at the time of filing of the story.

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Despite corrections, the technical structure still looks positive, says Technical Analyst Nilesh Jain. He is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking. He said that he expected a pullback till levels around Rs 12.50 and advised investors and traders to continue holding their positions. He puts the stop loss at Rs 10.30.

The telecom sector reforms has acted as a big trigger for the Vodafone Idea shares. The Vodafone Idea share prices jumped by almost 22 per cent on the intraday basis on 16 September.

After hitting a low of Rs 4.55 on the NSE on 5 August 2021, the stock has seen a rebound.  

The 52-week high of this stock is Rs 13.80 which this stock achieved on 15 January 2021.  

His recommendations are based on the technical analysis of the stock and not on the fundamentals of the company. 

Jain said that his bet is still on Bharti Airtel shares. Bharti Airtel shares were trading down 0.5 per cent on the NSE around this time at Rs 692.70.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)