Voda Idea can slide another 44%, if this support is broken; hints chart

Voda Idea stock is seen trading below its key moving averages and now testing key support levels on the monthly scale, levels not violated since December 2021; check key levels here

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Shares of Voda Idea have plunged almost 25 per cent to a low of Rs 9.70 in just two trading sessions post the adverse Supreme Court ruling.

The Supreme Court on Thursday rejected curative petitions seeking a review of its 2019 judgment on adjusted gross revenues (AGR) payable by telecom firms. 

The curative petitions had been put up by the telcos as a last legal resort to reduce their burden of Rs 1.43 trillion in AGR, which was based on a subsequent judgment in 2020. Of this, nearly 75 per cent comprised interest, penalties, and interest on penalties.

As per Business Standard report, DoT estimate of AGR dues pertaining to Voda Idea were Rs 58,254 crore, of which the telecom company has already paid Rs 7,900 crore. Voda Idea's own estimate was Rs 21,533 crore.

Voda Idea

Current Price: 10.30

Downside Risk: 43.7%

Support: Rs 10.40; Rs 9.10

Resistance: Rs 10.60; Rs 11.10

Technically, Voda Idea stock has broken support at the key moving averages on the daily and the weekly scale. At present, the stock is seen testing support at its 50-MMA (Monthly Moving Average) at Rs 10.40 levels; below which the next key support stands at Rs 9.10. CLICK HERE FOR THE CHART

The stock has held the 20-MMA support since August 2023; whereas the super trend line support at Rs 9.10 has not been violated since December 2021 on the monthly scale. Thus, the stock may attempt to hold these levels and consolidate around them in the near-term.

Having said that, break and sustained trade below Rs 9.10; shall open the doors for the sustained decline towards Rs 5.80, wherein stands the lower-end of the Bollinger Bands on the monthly scale.

Going ahead, the short-term bias for Voda Idea is likely to remain bearish as long as the stock trades below Rs 10.60. On the weekly scale, the long-term averages - 100-WMA (Weekly Moving Average) and the 200-WMA stand at Rs 11.10 and Rs 10.50, respectively. The stock will need to conquer these hurdles in order to revive hopes of any meaningful pullback at the counter.