Airtel, Voda Idea: Telecom stocks could see up to 30% upside, charts show

Bharti Airtel needs to overcome its resistance at Rs 780 for further upside; MTNL, Voda Idea can zoom up to 30%

Telecom Regulatory Authority of India (TRAI) on Monday slashed the reserve price for the forthcoming auction of 5G frequency by up to 36 per cent. Telecom players, however, were anticipating up to 90 per cent reduction.

A top executive of one of the leading telecom companies said that the said price cut is not sufficient for them to run a viable 5G network. “We believe that the base price should be one-third of that of the 2018 price for telcos to build a viable 5G business.", he said. READ MORE 

While, the sector is likely to remain in limelight given the news flow, here's how the stocks seem placed as per the technical charts. 

Bharti Airtel Ltd (BHARTIARTL)
Outlook: Breakout above Rs 780

This was the stock's second attempt to conquer the ressitance at Rs 780-mark, which has been elusive since the last six months. The broader outlook, however, thus hints towards at a breakout above Rs 780 level. The all-time high for the stock stands at Rs 781.80, whereas support for the stock exists at Rs 730 and further down at Rs 690. The medium-term trend will remain bullish as long as the stock succeeds to hold Rs 672-level, which is its 200-day moving average (DMA). CLICK HERE FOR THE CHART
 
Vodafone Idea Ltd (IDEA)

Likely target:  Rs 14
Upside potential:  30%

The counter is presently hovering around the 200-DMA at Rs 10.50 level. The stock shows the accumulation and if it thrives to sustain and hang on to 200-DMA, the upward bias could see a rally to Rs 14, which is the next major hurdle, daily chart shows. The Moving Average Convergence Divergence (MACD) is on track to cross the zero line, this denotes a robust momentum. CLICK HERE FOR THE CHART
 
Mahanagar Telephone Nigam Ltd (MTNL)
Likely target:  Rs 34
Upside potential:  30%

Shares of Mahanagar Telephone Nigam exhibits a breakout of “Double Bottom”, as per the daily chart. The trend remains positive for now and the stock may see addition of longs on minor declines. The major support for the stock falls at Rs 20 and an immediate comes at Rs 23. The robust momentum signals a rally to Rs 34. The MACD crossed the zero line upward depicting a positive bias, as per the daily chart. CLICK HERE FOR THE CHART

 
Tata Teleservices (Maharashtra) Limited (TTML)
Likely target: Rs 248 – Rs 236
Upside potential: 20%

TTML stock is currently absorbing all the selling pressure emerging in the range of Rs 192 to Rs 183, its gap-down range, as per the weekly chart. The major support for the stock comes at Rs 140 level and stability above Rs 200 could see a fresh breakout towards Rs 248 – Rs 236 mark, its next gap-down range. CLICK HERE FOR THE CHART