Stocks in Focus – Vodafone Idea – The telecom sector reforms has acted as a big trigger for the Vodafone Idea shares. The Vodafone Idea share prices has jumped by almost 22 per cent on the intraday basis. The stock was trading at 10.90 on the NSE at 1 pm on Thursday. In value terms, the stock price was up by Rs 1.95. 

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Even as Vodafone Idea is under the ban for the second straight day by the NSE in the Futures & Options (F&O) markets, the stock has continued its upward trend in the cash markets. The current rally in the VI share price is a strong pull back, Nilesh Jain Assistant, Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, said. 

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These securities are banned under the F&O segment as and when they cross 95 per cent of the market-wide position limit (MWPL). 

Jain said that the Vodafone Idea stock is well past its major resistance level of Rs 9.50 and is all set to achieve levels of Rs 12 and 12.50 from the current levels. An upside of 20 per cent from the current levels is open from here, he added.  

His advice to existing investors is to continue holding this stock. As for making fresh moves there is still a strict no for the investors.  

However, the traders can take betting calls at the current levels for a target price of Rs 12- Rs 12.50. He puts a stop loss at Rs 9.50. 

After hitting a low of Rs 4.55 on the NSE on 5 August 2021, the stock has seen a rebound with a lone instance of slippage on 9 September when the stock fell from the levels of Rs 8.40. The stock has been on a rally over the last three trading sessions including today.  

The 52-week high of this stock is Rs 13.80 which this stock achieved on 15 January 2021.

Meanwhile, on the BSE, the stocks were trading at Rs 11.24, up by 2.31  or 25.87 per cent from the Wednesday closing price.  

His recommendations are based on the technical analysis of the stock and not on the fundamentals of the company. 

Jain said that his bet is still on Bharti Airtel shares. 

Recommendations in this stock are the views of the analyst and are not the views of the publication. Any decision on investment and trading should be based on the discretion of individuals.