IDEA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.7

Here’s a detailed technical analysis of Vodafone Idea Ltd (IDEA)

📊 Trend Overview

Current Trend: The stock is in a short-term uptrend, recovering from its recent lows and trading above the 50-DMA but still below the 200-DMA.

Price Action: At ₹7.84, IDEA is above the 50-DMA (₹7.12) but slightly below the 200-DMA (₹7.94), indicating a potential breakout setup if momentum sustains.

📈 Momentum Indicators

RSI (63.1): Bullish zone, nearing overbought territory. Indicates strong momentum but suggests caution for short-term traders.

MACD (0.27): Positive crossover, confirming bullish sentiment and potential for continued upside.

Volume: Current volume (64.93 crore) is below the 1-week average (112.29 crore), suggesting reduced participation despite price strength.

📉 Moving Averages

Indicator Value (₹) Signal

50-DMA 7.12 Support

200-DMA 7.94 Resistance

Current Price 7.84 Above 50-DMA, just below 200-DMA

📌 Bollinger Bands

Price is near the upper band, suggesting strong momentum but also potential short-term resistance.

A breakout above ₹8.00 with volume could confirm trend continuation.

🧭 Support & Resistance Zones

Immediate Support: ₹7.40–₹7.60 zone

Major Support: ₹6.80–₹7.00 zone

Immediate Resistance: ₹8.00–₹8.20 zone

Major Resistance: ₹9.50–₹10.00, then ₹12.50–₹13.00 (52-week high)

🎯 Entry & Exit Zones

Optimal Entry: ₹7.40–₹7.60 (on pullback with MACD support)

Exit Zone: ₹9.50–₹10.00 (first resistance), ₹12.50+ if momentum builds

🔍 Conclusion

IDEA is currently trending upward with strong RSI and MACD signals. Price action above the 50-DMA and approaching the 200-DMA suggests a potential breakout. However, low volume and fundamental weakness (negative book value, losses) warrant caution. A breakout above ₹8.00 with volume could confirm trend continuation, while a pullback to ₹7.40 offers a favorable entry.

Let me know if you’d like a comparison with other telecom stocks like Bharti Airtel or Reliance Jio!

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