The stock of Vodafone Idea underperformed in 2021; however, in the past four trading sessions, it has been inching upwards with good volumes. What brought further delight to the chartists tracking Vodafone Idea is the fact that during Friday’s trading session, the stock made a 200D EMA crossover. The 200D EMA comes at 9.58 while the stock managed to close at Rs 9.75 per share on Friday.
Whenever a stock price sustains over 200D EMA, it is considered bullish as it indicates the uptrend in the counter. At the current price, the stock is trading above its 200D EMA, 50D EMA and 5D EMA thereby, indicating bullish sentiment.
A 200D EMA represents the average price over the past 200 days or 40 weeks. The moving average is used by traders to get a sense regarding the trend and is also, used to identify potential support or resistance areas. While the simple moving average is the average of prices over time, the exponential moving average gives greater weight to the most recent data.
Vodafone Idea has proven to be a wealth destructor for shareholders with stock generating negative 84.5 per cent returns for three years when Nifty Midcap 100 was up by 40.13 per cent during a similar period. The company reported negative RoE for three consecutive years while it posted a loss of Rs 4,532.1 crore for the fourth consecutive quarter.
In the current risk-on rally, the telecom stocks have not participated. However, a positive contribution from telecom stocks is expected this month.