Vodafone Idea Ltd (VIL) shares continued their strong upmove for the second consecutive session in Wednesday's trade. The stock surged 11.86 per cent to hit a day high of Rs 9.24. At this price, it has gained 19.38 per cent in just two days. The scrip saw high trading volume as around 13.28 crore shares were last seen changing hands on BSE. The figure was way more than the two-week average volume of 4.78 crore shares. Turnover on the counter came at Rs 117.70 crore, commanding a market capitalisation (m-cap) of Rs 62,869.23 crore.
The telecom operator has recently partnered with HCLSoftware, the software business unit of HCLTechologies Ltd, aiming to make its 4G and 5G networks smarter and more efficient.
A few analysts underscored that the telco's subscriber base is a cause of concern. "We are cautiously optimistic on VIL shares for a medium- to short-term perspective. The recent capital infusion and network strengthening would be medium-term positive. But, the company is still struggling with its subscriber base. We need to look carefully at the ARPU numbers. So, investors with a high-risk appetite should hold the stock," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"If promoters infuse more equity or the company gets any significant write-offs in liabilities, its prospects would further improve. In case, VIL continues to lose customers in a big then it would be a cause of concern," said G Chokkalingam, Founder and MD of market research firm Equinomics Research.
On technical setup, immediate support on the counter could be seen in the Rs 7.30-8.50 range. A decisive breach above Rs 8.80 level may trigger a further upside towards Rs 12 in the near term.
"Vodafone Idea has witnessed a consolidation breakout. The counter seems to have a support base around the Rs 7.30-8.50 subzone and has started gaining traction. For now, the subsequent potential resilience is seen around the Rs 9.50-10.80 subzone, while the mentioned support base is likely to cushion any shortcomings," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"The stock looked strong on daily charts and can hit an upside target of Rs 11 in the near term. Keep stop loss placed at Rs 8.50," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
"Vodafone stock price is slightly bullish on daily charts. A daily close above resistance of Rs 8.8 could lead to an upside target of Rs 12 in the near term," said Sebi-registered research analyst AR Ramachandran.
VIL is currently involved in the process of rolling out its 5G services in select areas. The company was formed in 2018 when Vodafone Group Plc merged its India business with Idea Cellular.
Recently, UK-based Vodafone Group said it sold the remaining 3 per cent stake in domestic telecom infrastructure firm Indus Towers for Rs 2,800 crore.