Debt-ridden Vodafone Idea, which is owned by Aditya Birla Group,saw a sharp gain today in the stock market. The stock has surged as much as 4%, after a sharp, sudden surge in the last few minutes.The stock closed at 8.86 Rs. Technically, the market expert, said that Vodafone Idea shares chart is indicating towards the continuation of a pullback.When we see such formations on the chart, then the stocks gradually attempt to test or achieve the highest levels of these patterns. For Vodafone Idea, the highest levels of this formation is around Rs 11. My view is that Vodafone Idea shares my attempt to move towards Rs 11," the market expert said.
"My commentary on Vodafone Idea shares at current price is that one should be very much careful while dealing in the very short-term. If the view very short-term, then my recommendation on Vodafone Idea shares is AVOID. If the view of 3 to 6 months of 12 months, then my recommendation on Vodafone Idea is buy. Vodafone Idea is a positional trade. But maintain a strict stop loss at Rs 7," the market expert added.
The Supreme Court is set to hear the telco's challenge to a fresh Rs 9,450-crore adjusted gross revenue (AGR) demand from the Centre on October 6 (Monday). Centre earlier told the apex court, "Not opposing Vodafone Idea plea, some solution is required, government is also an equity holder. Some solution may be required, subject to Supreme Court approval."The case stems from the Court's March 18, 2020 order, which upheld AGR dues up to FY17 as calculated by the Department of Telecommunications (DoT) and ruled out any reassessment by operators.On July 2, telecom minister Jyotiraditya Scindia had also told CNBC-TV18 that the Centre does not have any plans to convert Vodafone Idea into a public sector undertaking (PSU).