Vodafone Idea Shares Plummet Nearly 20%: What's Next for Investors?
Vodafone Idea shares have nearly halved from their recent peak of ₹19.18.
Shares of Vodafone Idea tumbled nearly 20% on Thursday, marking their steepest single-day fall since January 2022. The sharp decline comes in the wake of the Supreme Court's dismissal of curative petitions filed by telecom companies, including Vodafone Idea, regarding the contentious AGR dues.
As a result, Vodafone Idea's stock has now closed below its crucial 200-Day Moving Average (DMA) and has halved from its recent peak of ₹19.18, raising concerns among investors about the company’s future performance.
Key Factors Behind the Drop:
- AGR Dues: Vodafone Idea's dues from the Adjusted Gross Revenue (AGR) stand at a staggering ₹70,300 crore. The Supreme Court's decision to dismiss curative petitions has added to the company’s financial burden, triggering the stock's decline.
- Technical Breakdown: The stock has slipped below its 200-Day WEMA (Weighted Exponential Moving Average) of ₹13, a level it had held since November 2023, which is seen as a long-term support barrier.
- Recent Price Movement: After peaking at ₹19.18, the stock has nearly halved, closing at ₹10.44, its worst performance in nearly two years.
Analyst Insights:
Sacchitanand Uttekar from Tradebulls points out that the break below ₹13 signals a strong bearish trend. He expects the stock to continue falling, with a potential decline toward ₹7, as ₹13 has now become a formidable resistance.
Aditya Agarwal of Sanctum Wealth also echoes this sentiment, indicating that the breach of ₹12 with high volumes points to a negative bias in the short to medium term. He warns that a close below ₹10.4 could trigger another sell-off, potentially pulling the stock down to the ₹9.2 - ₹8.6 range.
Meanwhile, Jigar Patel of Anand Rathi observes that Vodafone Idea’s chart is deeply bearish after decisively breaking its 200-Day Exponential Moving Average (DEMA). Although the RSI (Relative Strength Index) shows the stock is in oversold territory, he advises avoiding the stock due to its strong downward momentum.
What Should Investors Do Now?
- Exit on Pullback: Agarwal suggests that investors use any pullback towards ₹12 - ₹12.4 as an exit opportunity, as the stock's structure remains weak.
- Bearish Outlook: Analysts expect the stock to face further downside pressure, with many suggesting it could drop as low as ₹7.
Conclusion:
With Vodafone Idea grappling with its massive AGR dues and facing significant technical breakdowns, the outlook remains grim for the stock in the near term. For existing investors, the advice is clear: approach with caution, and consider using any upside as a chance to exit.
This blog provides an updated perspective on Vodafone Idea’s stock performance and key takeaways for shareholders, reflecting the current bearish momentum and potential future trends.
Related Post
Canara Bank Q2 Results: Net Profit Climbs 11%, Asset Quality Shows Improvement
Read more
Suzlon Energy Q2 Results: Revenue Surges Past ₹2,000 Crore, Net Profit Nearly Doubles
Read more
Yes Bank Q2FY25 Results: Net Profit Jumps 10% QoQ, Total Income Rises 2.45%
Read more
Bandhan Bank Q2 FY25 Results: Net Profit Jumps 30% to ₹937 Crore, Beating Estimates
Read more
Bank of Baroda Q2 FY25 Results: Key Highlights and Performance Overview
Read more
Hyundai Motor's Q3 Operating Profit Drops 7%, Misses Analysts' Estimates
Read more
Aster DM Healthcare Shares Surge 10% Post Strong Q2 Results, Tops Nifty 500 Gainers
Read more
Godrej Properties Q2 FY25 Results: Achieves 51% of Annual Booking Guidance in First Half
Read more
PNC Infratech Loses ₹3,200 Crore in Market Cap After a 27% Fall in Two Sessions
Read more
Paytm Stock Drops 4% as Rs 930 Crore Q2 Profit Fails to Impress Investors
Read more
Hyundai Motor India Listing: Shares of India's largest IPO debut at a discount to issue price
Read more
Gravita India Q2 Results: Net Profit Rises 26% to ₹72 Crore; Revenue Grows 11% to ₹927 Crore
Read more
HDFC Bank Q2 FY25 Results: Net Profit Rises 5% to Rs 16,821 Crore, Beating Estimates
Read more
Tech Mahindra Q2 Earnings: Profit Surges 153% YoY, Interim Dividend Declared
Read more
ICICI Lombard Q2 Results: Net Profit Jumps 20% to ₹694 Crore, Declares Interim Dividend
Read more
Tata Consumer Products Q2 Results: Net Profit Stays Flat at ₹359 crore, Beats Estimates
Read more
Oberoi Realty Q2 Results: Net Profit Jumps 28% to ₹589 Crore, Declares Second Interim Dividend
Read more
Manappuram Finance Shares Plunge 15% to 11-Month Low After RBI Action and Multiple Downgrades
Read more
Axis Bank Q2 FY25 Results: Net Profit Up 18%, Operating Profit Rises 24%
Read more
Infosys Q2 FY25 Results - Revenue Growth Guidance Raised, Strong Performance Continues
Read more
Bajaj Auto Share Price Drops Over 10% After Q2 Results: Should You Buy the Stock?
Read more
L&T Technology Services Announces Interim Dividend of ₹17 Per Share, Fixes Record Date
Read more
TVS Holdings Board to Consider Fundraising Via Non-Convertible Debentures on October 23
Read more
SEBI Increases Index F&O Position Limits for Trading Members to ₹7,500 Crore
Read more
Hyundai Motor India IPO: Key Risks Investors Should Be Aware of Before Subscribing to the ₹27,870 Crore Issue
Read more
IREDA Q2 Results: Net profit jumps 36.2% on year to ₹387.75 crore, revenue up 41.3%
Read more
VA Tech Wabag Rises 4% After Bagging Major Repeat Orders from Reliance Industries
Read more
Suzlon Energy Shares Decline to a Two-Month Low: Eight Consecutive Days in Red
Read more
Tech Mahindra Shares Receive a Boost with CLSA Upgrade Ahead of Earnings Report
Read more
Bharti Airtel Clears ₹8,465 Crore Spectrum Liabilities to Strengthen Balance Sheet
Read more
KRN Heat Exchanger IPO Day 1: Strong Demand, GMP, Subscription Status, and Key Insights
Read more
Punjab National Bank Announces QIP at ₹109.16 per Share: Key Details Revealed
Read more
Vodafone Idea Shares Surge After $3.6 Billion Capex Deal with Vendors
Read more
HDFC Bank Stock Gains as Board Approves HDB Financial Services IPO Proposal
Read more
SpiceJet Board Approves ₹3,000 Crore QIP; Issues 48.7 Crore Shares at ₹61.60 Each
Read more
ION Exchange Surges 8% After Securing ₹161 Crore Order from Adani Power
Read more
Fed Meeting Outcome: Nifty IT Index Falls Nearly 3% Amid Market Uncertainty
Read more
Bajaj Housing Finance Extends Gains After 135% Listing Day Surge: Should Investors Book Profits?
Read more
Suzlon Energy Hits 5% Upper Circuit on Morgan Stanley Earnings Boost Prediction
Read more
Suzlon Energy Secures Largest Renewable Energy Order from NTPC Green Energy
Read more
Varun Beverages Announces Record Date for Stock Split; Shares Edge Higher
Read more
SEBI Tightens Criteria for Stocks in F&O Segment: A New Era of Market Quality Control
Read more
Nifty Pharma Reaches Record High as Three Stocks Gain Over 100% in a Year
Read more
Major Block Deal: IndiGo Shares Worth Over $1 Billion Change Hands, Rakesh Gangwal Likely Seller
Read more
Zee Entertainment Shares Surge After Announcing Settlement Agreement with Sony India
Read more
IRFC to replace LIC in the Nifty PSE index but railway PSU sees selling pressure
Read more
AU Small Finance Bank Sees Significant Block Deal: 1.7% Equity Changes Hands Worth ₹804 Crore
Read more
Zomato Sees ₹5,438.50 Crore Block Deal as Antfin Singapore Likely Divests Stake
Read more
Piramal Enterprises Stock Plunges Over 8% as Q1 Net Profit Falls 64% YoY: What Should Investors Do?
Read more
Hindenburg Research Hints at New Target in India: Cryptic Message Sparks Speculation
Read more
Bharti Hexacom Q1 Results: Net Profit Soars to ₹511 Crore, Revenue Up 14%
Read more
HAL Shares Extend Losses to 20% from Record High, but Still Trade Above Historical Valuations
Read more
Hindustan Zinc Q1 Results: Net Profit Surges Nearly 20%, Margin Expands 250 Basis Points
Read more
Titagarh Rail Systems Sees 8% Decline in Stock Following Subdued Q1 Earnings
Read more
Federal Bank Q1 Results: Net Profit Climbs 18% to ₹1,009.5 Crore, NII Jumps 20%
Read more
Bajaj Finance Q1 Results: Net Profit of ₹3,912 Crore Meets Estimates, Asset Quality Stable
Read more
Wipro Shares Plummet After Disappointing Q1 Results, Marking Biggest Drop in 4 Years
Read more
Garden Reach Shipbuilders Secures ₹840 Crore Order from National Centre for Polar and Ocean Research
Read more
Suzlon Energy Sees ₹50 Crore Block Deals; Major Announcement Expected on July 22
Read more
DMart Share Price Rises Over 4% After Avenue Supermarts Reports Strong Q1 Results
Read more
IREDA Q1 Results: Net Profit Soars by 30% Amid Strong Asset Quality and Loan Growth
Read more
Zee Entertainment Announces Board Meeting to Consider Fund Raising; Stock Surges 6%
Read more
GM Breweries Q1 Results: Shares Rise After 25% Profit Growth and Margin Expansion
Read more
₹900 Crore Fund Infusion Boosts Inox Wind and Inox Wind Energy Stocks by Up to 15%
Read more
Polycab Shares Fall After Block Deals Worth ₹2,716 Crore; Promoters Likely Sellers
Read more
Quant Mutual Fund Faces SEBI Probe for Alleged Front-Running: Should Investors Worry?
Read more
KEI Industries Stock Jumps Over 3% as Labour Strike Ends; Production Loss Limited to ₹10 Crore
Read more
Hyundai Motor India Files for Historic IPO with SEBI, Plans to Sell 14.2 Crore Shares
Read more
Puravankara to Raise ₹1,000 Crore Through Qualified Institutional Placement (QIP)
Read more
Adani's Ambuja Cements Expands with ₹10,422 Crore Penna Cement Acquisition
Read more
Vodafone Idea to Reduce Debt by Issuing ₹2,458 Crore in Preferential Shares to Nokia and Ericsson
Read more
IRB Infra Block Deal: 6.8% Equity Worth ₹2,656 Crore Changes Hands in Large Trade
Read more
Mphasis Block Deal: 15.6% Equity Changes Hands in Large Trade; Blackstone Likely Seller
Read more
Edelweiss Financial Shares Drops 17% Following RBI Action Against Two Entities
Read more
KPI Green Energy Soars: Stock Split Announced After Bonus Issue and Record Performance
Read more
📢 IREDA Clarifies FPO Rumors: No Decision Yet, Strong Financial Growth Reported Here’s What the Management Said
Read more
