Telecom Stocks In a massive blow to the incumbent telecom players, Bharti Airtel and Vodafone-Idea, the Supreme Court (SC) on Thursday
rejected telecom companies’ appeal against the Union government’s definition of Adjusted Gross Revenue (AGR). The apex court will later decide on the timeframe for the operators to pay AGR.
According to the experts, the verdict will have a devastating impact on the telcos and Vodafone-Idea will be the worst-hit. CLICK TO READ FULL REPORT
indicate for the telecom stocks.
S&P BSE TELECOM INDEX:
The recent consolidation in the form of triple bottom had given a breakout; however, the past three sessions observed extensive selling pressure. Although it did break the lower point of 900, it bounced back very sharply. Here onwards, till the index trades above 880 levels on closing basis, the positive bias should prevail. On the higher side, the index should see a revival towards earlier levels of 1,015. A bigger rally may emerge if the index manages to show stability above 985, which is its 200-day moving average (DMA), at least for 10 sessions. Moving Average Convergence Divergence (MACD) is trading with a positive crossover, a positive sign for the index. CLICK HERE FOR THE CHART
Bharti Airtel Ltd (BHARTIARTL):
The counter is trading in a tight range of Rs 320 – Rs 400 from several sessions. The overall trend seems to go ahead with a positive bias and if Bharti Airtel manages to cross Rs 400, then an upside towards Rs 430 and Rs 460 cannot be ruled out. This counter shows volatility, nevertheless it witnessed buying on every possible dip as 200-DMA, which is currently placed at Rs 329, stands strong. CLICK HERE FOR THE CHART
Vodafone Idea Ltd (IDEA):
The counter has broken the major support of Rs 4.50 and this should result in more sell-off going ahead, as per the chart. As the MACD slips below the zero line, the sentiment should deteriorate further. Only above Rs 7, the upside momentum may arise considering the reversal has got strength; otherwise, avoiding this counter would be an ideal bet. CLICK HERE FOR THE CHART