Voda Idea, Bharti Airtel: How to trade telecom stocks in the current market

Telecom stocks have been in limelight since the past few weeks - be it Jio Platforms selling stake to marquee global investors or Google eyeing stake in Voda Idea. Here are the key levels to track

BSE Telecom Index: The index is rising with “Higher High, Higher low” formation and the upward momentum will continue till 1187 level is held convincingly. Going forward, a close above 1,300 levels may further boost the momentum leading to 1,370 and then 1,400 levels. The overall trend remains positive as the index trades above all the crucial moving averages 50-DMA, 100-DMA and 200-DMA. CLICK HERE FOR THE CHART

Bharti Airtel Ltd (BHARTIARTL):  The gap down below Rs 580 levels has dampened the upside move. If the counter breaks Rs 550 on the downside, then further selling pressure may accelerate leading to a level of Rs 520. Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have made negative crossovers, suggesting a weak trend for the coming sessions. One needs to be cautious if the counter breaks Rs 550 decisively.  CLICK HERE FOR THE CHART

 
Vodafone Idea Ltd (IDEA): A close above 200-days moving average (DMA) has boosted the sentiment, as per daily chart. The current momentum may take the stock towards its resistance area of Rs 8.80 to Rs 9.10 levels. Upon conquering this, one can expect a bigger breakout that may take it to Rs 14 levels, which is its next resistance. The support comes at Rs 5 levels. The overall trend remains positive with sentiment improving gradually. That said, the positive sentiment is lartly due to reports that Google could be eyeing 5 per cent stake in the company. Any negative development there could have a bearing on the sentiment. CLICK HERE FOR THE CHART

 

Bharti Infratel Ltd (INFRATEL): The stock has crossed 200-DMA on strong volumes and can take it towards Rs 270 and then Rs 282 levels. RSI is on the verge of entering overbought condition even as the price is not showing any sign of weakness. A corrective moves, if any, may see addition of longs around Rs 230 levels. The support stays at Rs 220 on closing basis. CLICK HERE FOR THE CHART