Bharti Airtel stock seen testing this key support for third time in 14 mths

Technical outlook on Bharti Airtel: The stock is seen testing support at 20-WMA and 100-DMA; break of the same can trigger another 11 per cent dip towards the 200-DMA, suggests chart.

Bharti Airtel stock has witnessed a phenomenal over 4-fold jump or 314 per cent rally post the breakout on the monthly scale in November 2019. The stock from levels of Rs 430 in late 2019, rallied to hit an all-time high of Rs 1,779 in September 2024.

 

The stock has outperformed thus far in 2024, with a gain of over 52 per cent when compared to the NSE Nifty 50 returns of 10 per cent at present levels. 

 

However, amid the recent market downturn, Bharti Airtel stock too has witnessed some selling bias and declined nearly 12 per cent from its peak. In comparison, the Nifty 50 index has shed 9 per cent from its summit.

 

More importantly, the Bharti Airtel stock is now seen testing its 20-WMA (Weekly Moving Average) for just the third time in the last 14 months. The previous instances were September 2023 and June 2024. 

 

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The long-term chart shows that Bharti Airtel stock has been holding above this key support level since May 2023. Will the stock manage to sustain above it or will it break this key support? Here's what the chart suggests: 

 

Bharti Airtel

Current Price: Rs 1,570

Downside Risk: 10.8%

Support: Rs 1,565; Rs 1,550; Rs 1,508

Resistance: Rs 1,620; Rs 1,640; Rs 1,670

 

Apart from testing its 20-WMA support, Bharti Airtel stock is also seen testing its 100-DMA (Daily Moving Average) on the daily scale. The stock has been trading above its 100-DMA since May 2023. At present, the 100-DMA stands at Rs 1,550, while the 20-WMA stands at Rs 1,565. That apart, the weekly super trend line support stands at Rs 1,508. CLICK HERE FOR THE CHART

 

Thus, the support zone between Rs 1,508 - Rs 1,565 holds the key for the near-term outlook on Bharti Airtel. As long as the support zone holds, the stock can attempt a pull-back to Rs 1,670 levels; with interim resistance likely around Rs 1,620 and Rs 1,640 levels. On the flip side, break and sustained trade below the support zone could trigger a sell-off towards the 200-DMA at Rs 1,400 levels.

 

Having said that even as the stock trades in a slightly oversold zone, select other key momentum oscillators have turned negative, thus hinting towards a likely tepid bias going ahead. Hence, the stock may find it challenging to hold the 20-WMA support this time around.