Select telecom stocks testing key supports; MTNL may soar 20%, charts show

The BSE Telecom index is likely to gain up to 3.50 per cent, as the index firmly holds the support around the 100-DMA, shows chart.

Telecom stocks were in focus in trade on Wednesday after TRAI released the monthly subscriber data for February 2022. According to the stats, Bharti Airtel was the sole telecom company to add new subscribers in the month; while Jio and Voda Idea reported month-on-month decline in wireless subscribers. READ MORE

Meanwhile, the stock were seen trading with gains so far on Wednesday. Whereas on a broader time-frame the trend has been mixed so far this calendar year. Bharti Airtel has so far has gained 7 per cent this, post a 40 per cent rally in in 2021. On the other hand, Vodafone Idea has slumped 35 per cent in 2022 thus far, following a steep 45 per cent rally in 2021.

As per the technical charts, select stocks seem poised for gains in the near term. Here's the outlook: 

BSE Telecom Index
Likely target:  1,900
Upside potential:  3.5%

The BSE Telecom Index currently seems holding support of the 100-day moving average (DMA), set at 1,802.  The following support comes at 1,775 level, which is its 50-DMA, according to the daily chart. Thus, as long as these support levels are protected, the bullish bias could see a revival towards 1,900. CLICK HERE FOR THE CHART

Bharti Airtel Ltd (BHARTIARTL)
Outlook: Underneath trend bullish, current scenario shows sideways movement

Bharti Airtel is firmly holding the support of the 50-weekly moving average (WMA) since January 2021. The existing 100-WMA is positioned at Rs 654 mark. The stock is witnessing sideways to consolidation since September 2021 moving in the range of Rs 780 to Rs 650. The overall chart structure reflects bullishness, as significant moving averages are held with decisive strength, suggest the weekly and monthly charts. CLICK HERE FOR THE CHART

Vodafone Idea Ltd (IDEA)
Outlook: Needs to hold 100-WMA

In the recent past, the stock made two solid attempts to overcome the 200-WMA firmly. However, the counter failed to attract follow-up buying. Now, the structure is testing the lower-end of the support atf Rs 9, which is the 100-WMA. If the stock does not hold this average, the trajectory may see a bearish sentiment for some more time.   CLICK HERE FOR THE CHART

Mahanagar Telephone Nigam Ltd (MTNL)
Likely target: Rs 30
Upside potential:  20%
 
The shares of Mahanagar Telephone Nigam are somewhat holding the support of 200-day moving average (DMA), currently placed at Rs 22.85 level. It did see a breakout of “Double Bottom”, shows the daily chart. The underneath trend looks promising and with the support of 200-DMA, the momentum could reverse towards Rs 30-mark. The Moving Average Convergence Divergence (MACD) is sustaining above the zero line symbolizing a positive momentum. CLICK HERE FOR THE CHART