Last month, Bharti Airtel Sunil Mittal had also said that the telecom tariff hike was needed.
Telecom stocks were trading mixed in the late morning deals on Thursday. Earlier this week, cash-strapped Vodafone Idea (VI) announced tariff hikes on select plans as it struggles to retain customers and clear its pending dues. However, the company has moved cautiously by raising the tariff only in limited circles such as Uttar Pradesh.
According to a Business Standard report, the tariff hike
of Rs 50 has been effected under Vodafone Idea’s RED family pack plans which currently cost Rs 598 and Rs 749, respectively. However, the rates for the remaining eight post-paid plans remain unchanged. READ MORE
Last month, Bharti Airtel Sunil Mittal had also said that the telecom tariff hike was needed
. The industry needs a tariff hike
at some point in time, he had said adding "we will have to see the market conditions to do it."
Given this backdrop, here's a look at how telecom stocks fare on technical parameters and what should be your trading strategy in the current market.
BSE Telecom Index:
This index needs to strongly uphold the positive sentiment above the 200-DMA placed at 1,182, along with the immediate resistance of 1,220 levels. After conquering the 1,220 level, the upside bias may see a rally in the direction of 1,270 and 1,310 levels. The overall trend is bullish till the index defends 1,130 levels. The Relative Strength Index (RSI) has a support of 55 values. Until this value is not breached, the upward breakout above 65 may see the index scaling higher levels. CLICK HERE FOR THE CHART
Vodafone Idea Ltd (IDEA):
This is the second time that the counter is attempting to hold upside momentum above the 100-weekly moving average (WMA). If this sustains, which seems likely as the Moving Average Convergence Divergence (MACD) is resilient to breach the zero line downward, the upside breakout may see a rally in the direction of Rs 15 shortly. The closing basis support comes in at Rs 7.50, which is its 200-day moving average (DMA). CLICK HERE FOR THE CHART
Bharti Airtel Ltd (BHARTIARTL):
A clear view on the daily chart shows a resistance of 100-DMA currently placed at Rs 489 levels. The volumes were sluggish during the last attempt to conquer the said average. The same scenario can be seen at the current levels. Unless the counter does not establish a firm up move above the resistance average, the market participants may not be enthusiastic about the stock. CLICK HERE FOR THE CHART
Mahanagar Telephone Nigam Ltd (MTNL):
A Symmetrical triangle formation may be in progress with the breakout existing above Rs 10 levels, as per the weekly chart. A closing basis support stays at Rs 8 levels and upon the breakout, one can expect a rally towards Rs 16 and Rs 18 from a medium-term perspective. CLICK HERE FOR THE CHART
OnMobile Global Limited (ONMOBILE):
A “Flag Pattern” breakout can be seen on the weekly chart. The immediate support comes in at Rs 55 levels and the medium-term outlook has changed to a greater positive sentiment with the overall stock moving in the direction of Rs 90 levels. CLICK HERE FOR THE CHART