What’s Next for Vodafone Idea Shareholders After Recent Plunge?

Vodafone Idea shares plummeted nearly 20% on September 19, 2024, marking the steepest one-day drop since January 2022. This decline followed the Supreme Court’s dismissal of curative petitions regarding Adjusted Gross Revenue (AGR) dues. Currently, Vodafone Idea's AGR dues exceed ₹70,300 crore, further intensifying the company’s financial strain.

The stock has now fallen below its 200-day Moving Average, a level it hadn’t breached since June 2024 and has almost halved from its recent peak of ₹19.18.

What Should Shareholders Do Now?

• Sacchitanand Uttekar of Tradebulls: The stock's recent drop below the ₹13 support level, which it held since November 2023, suggests a possible continuation of the downturn. With rising volumes indicating increased selling pressure, the stock might decline further towards ₹7, making ₹13 a significant resistance level in the long term.
• Aditya Agarwal of Sanctum Wealth: The breach of the ₹12 support level with high trading volumes could lead to a negative trend in the short to medium term. A further decline to ₹9.2–8.6 is anticipated if the stock closes below ₹10.4. Agarwal recommends using any recovery towards ₹12–12.4 as an opportunity to exit long positions.
• Jigar Patel of Anand Rathi: The stock’s chart shows a deeply bearish trend after breaking the 200-day Exponential Moving Average (DEMA). With the Relative Strength Index (RSI) in the oversold territory, Patel advises avoiding the stock due to its strong downward momentum.

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Vodafone Idea shares ended the day at ₹10.44, reflecting a 19% drop. Shareholders should closely monitor market trends and technical indicators while considering their exit strategies in light of the stock's current trajectory.

Reference: CNBC-TV18