Supreme Court decision supports Vodafone stock after GBX122.33 support test

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Vodafone slips 0.08% to GBX125.15 today

Highlights

India's Supreme Court dismissed the Centre's appeal, ending a 363 crore GST liability claim against Vodafone Idea.
The decision removes a major regulatory overhang and reduces historic legal and tax risk for Vodafone Idea.
Vodafone shares maintained stable price action, trading in a bullish structure with a forecast range of GBX120.99 to GBX129.31 for the next four sessions.

Legal clarity as Supreme Court ruling lifts Vodafone’s India risk

The Supreme Court's decision to dismiss the Centre's appeal and uphold the Bombay High Court's earlier quashing of a 363 crore GST demand against Vodafone Idea, as reported by Barandbench, removes a significant legal and tax uncertainty for the merged entity. This outcome clears a legacy regulatory overhang, potentially lowering risk perception tied to past liabilities for Vodafone's India business. While supportive for the company's operational outlook, price action in the stock has remained relatively stable reflecting a broader period of low volatility.

Intraday bullish bias as momentum and overbought signals diverge

On the technical front, VOD is positioned above the MA-20 at 123.97 and the MA-50 at 120.42 on the hourly chart, as well as above the MA-200 at 109.44 on the daily timeframe. The Ichimoku Kijun offers immediate support at 122.33. MACD registers in Strong Buy territory, and ADX is in Buy mode, signaling upside momentum. RSI reads 68.57, pointing to overbought conditions, while CCI holds at Buy, and Stoch RSI remains Neutral. Bull/Bear Power shows buyer dominance, further confirming the intraday bullish bias, whereas the Awesome Oscillator does not show a strong trend alignment.

Upside potential dominates as consolidation and breakout risks emerge

Looking to the next four sessions, the projected price range for VOD is GBX120.99 to GBX129.31, representing its typical volatility band relative to current levels. The probability of an upward move stands at 79%, far outweighing the 21% likelihood of a downside move. If VOD holds within this range, sideways consolidation is the most likely scenario, but a break above 129.31 could trigger further upside, while a breach of 120.99 would open room for retracement.

Anton Kharitonov, expert at Traders Union, believes the Supreme Court’s decision removes an important legal risk for Vodafone’s India business, but sees little immediate impact on market sentiment. He notes that the technical setup remains bullish, yet price action is subdued within a defined range and overbought signals are emerging. Kharitonov maintains a cautious stance in line with his low optimism outlook. "Until VOD breaks above GBX129.31, I remain defensive and expect mostly sideways movement."

Earlier, analysts noted that competing private equity bids and regulatory factors were pivotal in shaping deal outcomes within the UK telecom sector. The current technical landscape for Vodafone highlights a key range to monitor between GBX120.99 and GBX129.31, with a breakout above or below this band likely to dictate the next directional move.

Source of Data: VOD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.