Vodafone Idea Breakout Watch: Analyst Sees Targets Up to ₹16.75
Vodafone Idea, one of India’s largest telecom operators, has been under pressure in recent times due to concerns over its debt and financial health. However, despite this, the stock has shown some signs of resilience and has been rising in recent days. Analyst Krishna Pathak, in a recent note, highlighted a potential short-term breakout play in the stock, with key levels to watch for investors.
According to Pathak, accumulation is visible in Vodafone Idea at levels of ₹4.30-₹4.75, with resistance building up near ₹7. A breakout above this level could unlock significant targets for the stock, while a breakdown below ₹3 could lead to deeper losses.
In this blog post, we’ll take a closer look at the analyst’s call and examine the potential implications for Vodafone Idea’s stock price.
Current Market Situation
Vodafone Idea’s stock has been on a rollercoaster ride in recent times, with the company facing intense competition in the telecom sector. The operator has been struggling to pay its debts, which have led to concerns over its financial health. However, in recent days, the stock has shown some signs of resilience, with the company’s shares rising by around 10% in the past week.
The company’s financials have been a major concern for investors, with Vodafone Idea’s debt standing at around ₹1.2 lakh crore. The company has been trying to restructure its debt and has been in talks with its lenders to secure a debt recast. However, the process has been slow, and the company’s financial health remains a major worry.
Analyst’s Call
Krishna Pathak, an analyst at a leading brokerage firm, has flagged a short-term breakout play in Vodafone Idea’s stock. According to Pathak, accumulation is visible in the stock at levels of ₹4.30-₹4.75, with resistance building up near ₹7.
Pathak’s note highlights the following key levels to watch for the stock:
- Accumulation levels: ₹4.30-₹4.75
- Resistance levels: ₹7
- Breakout targets: ₹9.90, ₹13.45, and ₹16.75
Rationale Behind the Call
Pathak’s call is based on technical analysis, which suggests that the stock is forming a bullish pattern. The accumulation levels of ₹4.30-₹4.75 are seen as a strong buying zone, with the stock showing signs of support at these levels. The resistance level of ₹7 is seen as a key hurdle, and a breakout above this level could unlock significant targets for the stock.
The analyst’s note highlights that the stock has been forming a descending triangle pattern, which is a bullish reversal pattern. The pattern suggests that the stock is likely to break out of the triangle and move higher.
Implications for the Stock
A breakout above ₹7 could have significant implications for Vodafone Idea’s stock price. According to Pathak’s note, the stock could target levels of ₹9.90, ₹13.45, and ₹16.75 if it breaks out above ₹7.
On the other hand, a breakdown below ₹3 could lead to deeper losses for the stock. The analyst’s note highlights that the stock has strong support at levels of ₹3, and a breakdown below this level could lead to a decline in the stock price.
Conclusion
Vodafone Idea’s stock has been under pressure in recent times due to concerns over its debt and financial health. However, despite this, the stock has shown some signs of resilience and has been rising in recent days. Analyst Krishna Pathak has flagged a short-term breakout play in the stock, with accumulation seen at levels of ₹4.30-₹4.75 and resistance near ₹7.
A breakout above ₹7 could unlock significant targets for the stock, while a breakdown below ₹3 could lead to deeper losses. Investors should keep a close eye on the stock’s movement and watch for key levels to watch.
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