Bharti Airtel, Vodafone Idea: How to trade AGR case-related stocks?

Telecom stocks were back in focus on Thursday after the Supreme Court asked telecom companies to file their financial statements before it and fixed adjusted gross revenue (AGR)-related dues case against them for hearing in July. 

On their part, Bharti Airtel has already paid Rs 18000 crore, 70 per cent of the Rs 25,600 crore received by Department of Telecom (DOT) from all companies. On the other hand, Vodafone Idea (VIL), which has liabilities worth Rs 53,000 crore pleaded saying that it does not have enough money to pay and should be given some time. READ MORE HERE 

Exposure to these telcos also saw bank stocks react to the development. According to reports, SBI’s funded exposure to telecom companies is at Rs 29,000 crore, but its largest exposure is to Vodafone Idea with Rs 11,200 crore. Private sector banks led by IndusInd Bank (Rs 5,000 crore) and ICICI Bank (Rs 1,700 crore) are the other major lenders to VIL, reports say.

Purely from a technical perspective, here are the key levels for the related stocks you should keep a tab on.

Bharti Airtel Ltd (BHARTIARTL): The major medium-term support for this counter is at Rs 520. Till this level is held, it may see buying coming back on a correction. The immediate support comes at Rs 540 levels. As soon as the Relative Strength Index (RSI) crosses 60 mark, short-covering may push price above Rs 600 levels. The overall trend looks promising with a positive bias. CLICK HERE FOR THE CHART

Vodafone Idea Ltd (IDEA): The recent development has boosted positive sentiment for this counter. This led to a rally that witnessed selling pressure above Rs 12.50 levels. The 100-weekly moving average (WMA) stays at Rs 13.35 levels. Voda-Idea is witnessing profit booking / selling pressure at higher levels, charts indicate. On the other hand, the Moving Average Convergence Divergence (MACD) has climbed the zero line upward, which should help lessen the negative momentum till the time there is a major negative corporate development. CLICK HERE FOR THE CHART

Bharti Infratel Ltd (INFRATEL): This stock is having difficulty sustaining above the 200-day moving average (DMA). However, on the downside, 100-DMA is holding the weakness, placing a support at Rs 202 levels. The overall trend remains weak till the major selling range of Rs 240 to Rs 242 does not get conquered. One can expect a range-bound trade in the days ahead. CLICK HERE FOR THE CHART

State Bank of India (SBIN): The counter is witnessing a selling pressure above 50-DMA currently placed at Rs 175 levels, and sustaining the upside rally seems difficult. With a negative crossover of RSI, the stock may face further selling pressure. The MACD is losing direction and is turning down and can breach the zero line. If that happens, then the counter may see more weakness in the sessions ahead, the daily chart show. CLICK HERE FOR THE CHART

IndusInd Bank Ltd (INDUSINDBK): As the stock tries to sustain above Rs 480 levels, the trend seems positive. The MACD is trading with a positive crossover above the zero line, indicating a positive trend in the days ahead. The support remains at Rs 480 for an immediate rally towards Rs 505 levels. The counter is depicting positive gap up close on the charts - an indication of underlying strength. CLICK HERE FOR THE CHART