Chart Check: Can QIP help Bharti Airtel stock to close above Rs 480?

In the last several years, the stock has crossed Rs 480 for about five times during intra-day but could never close above the level

Bharti Airtel's stock has never closed above Rs 480. Not even when the stock hit its lifetime high of Rs 498 in intra-day trade on November 2017. Back in 2007, the stock hit a high of Rs 479 and has crossed Rs 480 level over five times since, only to close below the said level, daily chart shows. It climbed to Rs 485.60 in December 2019, but again inched lower by the session's end. This establishes a selling pressure for Airtel's stock in the range of Rs 480 – Rs 500 levels as per the daily chart.
 
At the current juncture, the daily chart pattern appears similar to a consolidation and is forming the pole structure of a Flag Pattern. As per the consolidation theory, a breakout above the upward resistance symbolizes a positive rally. All this may materialize if the counter manages to sustain above Rs 465 levels for a couple of sessions.

The stock might get some help from the qualified institutional placement (QIP) the company launched on Wednesday to pay AGR (adjusted gross revenues) and spectrum usage charges dues of over Rs 35,000 crore by January-end, as ordered by the Supreme Court. The company received offers for subscriptions aggregating over $10 billion, three times its target of $3 billion, through a combination of qualified institutional placement (QIP) and foreign currency convertible bonds (FCCB). READ MORE
On the chart, the stock's Relative Strength Index (RSI) has a trend line resistance at 65 value and Moving Average Convergence Divergence (MACD) is trading in a negative crossover above zero line.

 

If the counter manages to close above Rs 480 level, then the subsequent breakout will break a decade-long resistance which may push the stock price to Rs 570 and Rs 600 levels in the year 2020. CLICK HERE FOR THE CHART

Source: spidersoftwareindia