Should you buy Voda Idea post Q4 results or wait? Here's what the chart say

The stock has declined more than 50 per cent from its 52-week high touched in December 2021; Charts indicate the best way to approach the stock is to stay on the sidelines for now.

Vodafone Idea reported a consolidating loss of Rs 6,563 crore for the fourth quarter of FY22 on May 10, 2022. The net loss has narrowed by 6.5 per cent when compared with a net loss of Rs 7,023 crore reported in the same quarter a year ago.

Nevertheless, the stock price performance of the Vodafone Idea over the period has been dismal to say the least. The stock price has tumbed around 50 per cent from a high of Rs 16.80, its 52-week high registered in December 2021.
 

This is due to the stock’s inability to decisively exceed and add follow-up momentum after conquering its 200-weekly moving average (WMA) situated at Rs 15.11 in December. Since then, shares of Vodafone Idea have tanked with strong volume, and every possible reversal witnessed aggravated selling pressure, shows the daily chart.

At present, the stock is trading under the crucial support of Rs 9, which showed a greater degree of accumulation lately, according to the weekly setup.

Now, to rally on the higher side from a medium-term perspective, the stock needs to conquer the selling pressure zone of Rs 12 to Rs 13; which seems very far from the current price of Rs 8.50.

The immediate resistance for the stock exists at Rs 10 and a conclusive close above the same could see an attempt to reach the pressure zone. 

For now, the best way to approach the stock seems to be to stay on the sidelines. CLICK HERE FOR THE CHART