Bharti Airtel, Voda Idea, MTNL: What tech charts say about telecom stocks

After a strong breakout above Rs 400, Bharti Airtel has managed to absorb the selling pressure in the range of Rs 440 - Rs 455.

Shares of telecom services providers were in focus on Monday, a day after Bharti Airtel and Vodafone Idea announced a tariff hike in the range of 15 per cent and 40 per cent across different plans. The tariff hike by both companies will be applicable from December 3, 2019. Reliance Jio has also said it would be introducing new plans with unlimited voice and data which would be effective from December 6.  

Here's a technical analysis of telecom index and key stocks -

BSE Telecom Index : The daily chart shows a "double-bottom formation"  which broke out at 1,020 levels. Furthermore, the index has managed to absorb all the selling pressure around 1,100. The “gap up” opening today has opened doors for 1,270. The 50-day moving average (DMA) has made a positive crossover with 100 DMA, a sign of an upward trend. The 200-DMA is located at 981 and the 50 DMA is rising upward, making efforts to cross 200-DMA. CLICK HERE FOR THE CHART

Bharti Airtel Ltd (BHARTIARTL): After a strong breakout above Rs 400, the counter has managed to absorb selling pressure in the range of Rs 440 -  Rs 455. With today's "gap-up" start, the stock has entered its next leg of the upside, with resistance seen at Rs 500. That said, it needs to close firmly with “above average volumes” to head towards Rs 500. The Relative Strength Index (RSI) has entered the overbought region. CLICK HERE FOR THE CHART
  
Reliance Industries Ltd (RELIANCE): The “Higher High, Higher Low” formation has helped this counter to scale new highs. The counter is not losing any strength even in overbought condition of RSI. The 100 DMA has crossed 200 DMA positively as per the daily chart. This proves that the price can see higher levels going ahead. The closing basis support stays at Rs 1,500 levels. Although, the volumes show a routine scenario, the counter is not showing any weakness.  CLICK HERE FOR THE CHART
  
Vodafone Idea Ltd (IDEA): The daily chart shows if the counter sustains above 100 DMA, then a rally towards Rs 11 cannot be ruled out. The Moving Average Convergence Divergence (MACD) has climbed above the signal line, a sign of a positive upside. The support stays at Rs 5.50. Since last few sessions, the counter has risen with above average volumes, indicating volume is supportive of a price rise. CLICK HERE FOR THE CHART
 
Mahanagar Telephone Nigam Ltd (MTNL): The counter is in Trade-to-Trade segment with a lack of buying strength. However, recent moves show that a sustainable close above 200 DMA placed at Rs 9, may regain investors' interest. Also, the weekly formation shows selling pressure around Rs 9. It trades with a negative crossover on MACD. CLICK HERE FOR THE CHART