Technical Analysis

Your Stock Portfolio

Stock query: Bharti Airtel likely to run out of steam

Yoganand D | Updated on June 14, 2020 Published on June 14, 2020

Next long-term support is at ₹400; investors with long-term perspective can stay invested

Here are the answers to readers’ queries on the performance of their stock holdings.

I hold Bharti Airtel. Is it worthwhile to continue with it for another two years? What is the downside risk and benefit I can expect?

RT Rajasekaran

Bharti Airtel (₹560.1): The stock of Bharti Airtel is in an uptrend across all time-frames — short, medium and long-term.

After recording a 52-week high at ₹611.7 in late May this year, the stock had started to move sideways. Over the past three weeks, it has been range-bound between ₹550 and ₹600 with a negative bias.

The stock now tests a key support at ₹550. A decisive plunge below this base will bring back selling interest and drag the stock down to ₹500 in the near term. As long as the stock trades above the key base in the range between ₹480 and ₹500, the short-term uptrend that has been in place from the key support level of ₹400 in late March will remain intact.

A slump below ₹480 will alter the short-term uptrend and drag the stock lower to ₹450 and then to ₹420. A further decline below ₹420 can test the key long-term support at ₹400.

The next vital long-term support for the stock is in the band between ₹340 and ₹350 which could be tested if the stock falls below ₹400. You can consider booking partial profit if the stock struggles to move beyond the immediate resistance level of ₹600. A strong break above this barrier will push the stock northwards to ₹650 in the long run.

On the downside, you can consider accumulating on a fall below ₹450 levels with a stop-loss placed at ₹380. Investors with a long-term perspective can stay invested with a stop-loss at ₹340.

I have shares of IOC bought at ₹77. What is the technical outlook for the stock?

Ravichandiran A

Indian Oil Corporation (₹88.3): The stock of Indian Oil Corporation is in a downtrend over the long- and medium-term, but is trending upwards in the short-term.

After taking support at ₹71 in mid-May this year, the stock started to move upwards and has been in a short-term uptrend.

This rally encountered a key resistance at ₹93 last week and the stock tests this barrier.

A decisive upward breakthrough of this level can push the stock higher to ₹100. A further rally beyond ₹100 can take the stock northwards to ₹110 and then to ₹120 over the medium- term horizon. On the other hand, a conclusive fall below the immediate support level of ₹80 can pull it lower to ₹75 and then to ₹71 over the medium term.

You can hold the stock with a stop-loss at ₹74 and can consider booking partial profit at ₹110.

Send your queries to techtrail@thehindu.co.in

Published on June 14, 2020

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