Idea (now Vodafone Idea) has been one of the biggest price losers in the Indian bourses. The script came down from price levels of 125 to almost 3.5. If we were to look at the long term chart (Monthly or Weekly), we can see that the price has broken out of a downward channel
and as long as that level is defended, there can be significant upside for the stock. With the latest news of Google
considering to buy stake in Vodafone Idea, there can be some positive sentiment based spike in price in the short term. However the long term chart structure suggests that if the momentum is sustained the prices can reach targets as mentioned in the chart.
The first version of this analysis appeared in the educational blog of Center for Research in Asset Markets and Economy (CRAME), Christ (Deemed to be University) Lavasa
The content provided in CRAME blog is for educational purposes only. CRAME or the analyst(s) do(es) not assume any responsibility for the financial decisions/actions made on the basis of the analysis presented in the blog.
Prof. Binu P Paul PhD
Prof. Soumya V ACSI