Idea Vodafone Stock Prediction, Targets History & Analysis for NSE, BSE

Why is Idea Vodafone Share going to Explode on 18th March 2020??

Idea Vodafone has been one of the hottest stocks in March 2020 where it has already given more than 2X returns to investors who purchased it on a low of Rs 2.50. Corona Virus has stuck in many countries and global stock indices are going down. Markets are highly volatile and investors are moving their money to safer havens like gold and cash. At such a volatile market a stock giving 2X results is something not believable, So let's jump in and see what's going on with this stock. 

Current Price of Idea Vodafone and Historical Analysis

Idea Vodafone was a hot stock in 2015 and when it used to trade at 100 plus rupees in the past but things have been moving down the hill for idea Vodafone in the last 5 years. The Indian telecom industry has seen multiple changes in the last 5 years with the advent of Reliance Jio which has made the telecom sector highly competitive. Very low data rates have been a major challenge for the telecom industries and this has resulted in a major decline in their profits.
Consequent losses for Idea Vodafone and an outstanding payment of 53000 Cr to the department of telecommunication brought the fear of going out of business for Vodafone Airtel. This fear was also seen in the share price which dropped to a low of Rs 2.40 after which the news was out of idea Vodafone paying 2700 Cr as the first payment towards DOT.
Vodafone Idea has been positive since then and also launched its double data plan for customers which has infused a positive sentiment and trust in investors causing a hike in the share price.

So, Why is Idea Vodafone going to explode on 18th March

On 18th March 2020, the supreme court is going to make a decision on AGR (average gross revenue) reports and other taxes for the telecom industry. Vodafone Idea, Airtel and Jio have filed requests for an increase in data prices and appealed to adjust the AGR. The government has been open to the AGR appeal and looks positive in supporting the telecom industry which is a hugely positive signal.

Vodafone Idea has also filed its version of AGR which they show at 23000 Cr rather than the 53000 as imposed by the government. Idea Vodafone also made its second payment of 3650 Cr on 16th March 2020. All these positive signals are pointing towards a decision favorable to Vodafone Idea and this decision could cause a pump in Vodafone Idea price.

Vodafone Idea share predictions and recommendation

Looking at the current scenarios it looks like Vodafone Airtel will jump to 8.00-8.50 if the news is positive for them or a 7.00-7.50 if it is not so overwhelming. We are not financial advisors, we study markets and analyze them based on facts so don't consider this as financial advice. 

Our recommendation for Idea Vodafone will be as the telecom industry is not doing too well in the country the share looks to remain in a bearish zone. Until you see a huge spike in data charges in India it will be hard for Idea Vodafone to make considerable profits. An appeal against this has been made to the court so if the prices get hiked up the share can come out of the bearish zone.

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