Shares of Vodafone Idea Ltd (VIL) jumped 7.24 per cent on Tuesday to hit an intraday high of Rs 8.30. The stock eventually settled 6.72 per cent higher at Rs 8.26. It saw high trading volume on BSE as around 7.42 crore shares changed hands. The figure was higher than the two-week average volume of 4.86 crore shares. Turnover on the counter came at Rs 60.17 crore, commanding a market capitalisation (m-cap) of Rs 57,572.05 crore.
VIL has partnered with HCLSoftware, the software business unit of HCLTechologies Ltd, aiming to make its 4G and 5G networks smarter and more efficient. "VIL is now using HCL Augmented Network Automation (HCL ANA), a multivendor self-optimizing network (MV-SON) platform, to manage its Ericsson and Samsung networks. This advanced technology will help Vi improve network performance, save energy, and offer better services to its customers," an exchange filing stated.
A market expert said investors with a high-risk appetite should only consider VIL stock. "VIL shares are suitable for high-risk appetite investors only. We need to wait and watch for the fundamental shift in the company earnings and subscriber base, which has been coming down in the last few quarters. We also need to look at the subscriber base before taking any serious positions," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Technically, immediate support on the counter could be seen in the Rs 7.35-7.30 range. A decisive breach above Rs 8.50-8.80 levels is required for further upside potential.
"Vodafone Idea has been consolidating in a slender range for the past couple of trading weeks with no clear traction. For now, Rs 7.30 followed by Rs 6.60 is likely to be seen as intermediate support. On the higher end, a decisive breach above 8.50-8.80 is likely to trigger fresh long momentum in the counter," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Vodafone stock price is slightly bullish on daily charts with strong support at Rs 7.35. 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.
Vodafone Idea Ltd (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.