Up 30% from lows; is Vodafone Idea share price headed towards Rs 10-mark?

Technical charts suggest that Vodafone Idea stock can potentially rally to Rs 10.90 on the upside, provided the stock sustains above this resistance zone.

Shares of Vodafone Idea have surged up to 30 per cent in the last few trading sessions after the Union Cabinet agreed in-principle to waive-off bank guarantee requirements for deferred spectrum payments by telecom operators.  The stock rose from a low of Rs 6.60 on November 22, rallied to a high of 8.60 on November 28, post the relief news. At 10 AM on Monday today, Voda Idea stock was seen trading marginally in the negative zone at Rs 8.30 levels.  According to analysts at ICICI Securities, Vodafone Idea is expected to be one of the key beneficiaries of the waiver as the company was required to submit a total of Rs 24,700 crore in bank guarantees.  The waiver applies to spectrum acquired by telecom operators in auctions held before 2022.  Vodafone Idea's debt from banks and financial institutions reduced by Rs 4,580 crore during the last one year (was at Rs 7,830 crore in Q2FY24) and stood at Rs 3,250 crore.  However, as per the company’s management the payment obligations to the Indian government stood at Rs 2.12 lakh crore as of September 30, 2024 including deferred spectrum payment obligations of Rs 1.42 lakh crore and AGR (Adjusted Gross Revenue) liability of Rs 70,320 crore.  On the earnings front, the debt-ridden telecom firm's consolidated loss narrowed to Rs 7,175.9 crore in the quarter ended September 2024, mainly on account of increase in average revenue per user (Arpu) post-tariff hike in July.  The company had posted a loss of Rs 8,746.6 crore in the same period a year ago.  Consolidated revenue increased by 1.8 per cent year-on-year (YoY) to Rs 10,918.1 crore from Rs 10,714.6 crore in the same period. Vodafone Idea CEO Akshya Moondra indicated the company needs another hike in tariff to cover cost of capital.  Meanwhile, here's how Vodafone Idea stock is placed on the charts:  Vodafone Idea  Current Price: Rs 8.30  Upside Potential: 31.3%  Support: Rs 7.70; Rs 6.80  Resistance: Rs 8.60; Rs 8.80; Rs 9.50; Rs 10.40  Post the recent 30 per cent rally, Voda Idea stock now seems to be facing resistance around its 50-DMA (Daily Moving Average) at Rs 8.60 levels; which also coincides with the higher-end of the Bollinger Bands on the daily chart at Rs 8.80.  Key momentum oscillators on the daily and weekly chart have turned marginally favourable for the stock. Further, the stock is also favourably placed as per the daily super trend line.  Chart suggests that break and sustained trade above the Rs 8.60 - Rs 8.80 resistance zone can trigger a rally towards Rs 10.90 levels; with interim resistance expected around Rs 9.50 and Rs 10.40 levels. CLICK HERE FOR THE CHART  In the near-term, support for Vodafone Idea share price on the downside exists at Rs 7.70 - its 20-DMA; followed by the super trend line at Rs 6.80 levels.