Vodafone Idea shares hit 52-week high; stock up 20% in a month; check key support, resistance levels

Vodafone Idea Ltd (VIL) shares on Wednesday surged 7.38 per cent to hit a one-year high of Rs 18.47. The stock eventually settled 4.77 per cent higher at Rs 18.02. At this price, the counter has gained 19.89 per cent in a month.

Telecom stocks, including VIL, saw a sharp uptick today after this year's telecom spectrum auction concluded. The auction, which ended within two days, garnered around Rs 11,300 crore of bids against airwaves worth Rs 96,317 crore that were up for sale.

A couple of weeks back, the telco's Board approved the issuing of shares worth up to Rs 2,458 crore on a preferential basis to Nokia Solutions and Ericsson India.

"Nokia and Ericsson will participate for up to Rs 1,520 crore and Rs 938 crore respectively, subject to approval by VIL shareholders at the EGM to be held on July 10, 2024," it stated.

Akshaya Moondra, CEO of VIL, said the telecom operator is all set to participate in the industry growth with right investments to expand its 4G coverage and offer 5G experience to its customers while remaining focused on its execution capabilities.

"As VIL embarks on its growth journey, support from key stakeholders is critical and the agreement with Nokia and Ericsson reaffirms these vendors as long-term partners of the firm and sets the stage for the next phase of our growth," Moondra added.

On technical setup, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs).

Analysts largely suggested that the stock looked 'strong' on daily charts. With that being said, support could be seen at the Rs 16.80-16 zone. And, a decisive close above Rs 18.40 is required for more upside.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a decent move from Rs 12 levels. The bias has been maintained strong and a decisive close above Rs 18.40 can trigger a fresh upward move in the coming days. The next visible upside targets are Rs 20.40 and Rs 23.60. The near-term support will be maintained near Rs 16.80."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "VIL has the potential to hit an upside target of Rs 20. Keep stop loss placed at Rs 16."

Voda Idea was formed in 2018 when Vodafone Group merged its India business with Idea Cellular. As of May 21, 2024, promoters held a 38.17 per cent stake in the company.