Stake buy buzz: Bharti Airtel stock looks weak, Paytm must hold its 200-DMA

Shares of Bharti Airtel may plunged up to 7 per cent on breaking 200-DMA, while Paytm shares need to holds above its 200-DMA to upheld the positive stance.

Shares of Bharti Airtel and One 97 Communications to remain in spotlight for coming sessions after Bloomberg reported the Indian telecom tycoon Sunil Mittal seeks to purchase a stake in the fintech payment bank.

Also, after the recent share buyback, the One 97 Communications is considering selling some part of its shares to maintain the required threshold.

Meanwhile, around ten sessions ago, the shares of One 97 Communications observed a sharp up move gaining almost 32 per cent in just four sessions. Such a move, supported with rising volumes, has caught attentions of several market participants.

Bharti Airtel stock, on the other hand, has not performed well since November last year, when it recorded all-time high of Rs 860.55. The stock is down 12 per cent since then. 

On Tuesday, Shares of Bharti Airtel were seen trading muted, while One 97 Communications shares plunged closed to 7 per cent in the morning intraday deals. 

Here’s the technical outlook on both these stocks:- 

Bharti Airtel Ltd (BHARTIARTL)

Likely target: Rs 700

Downside potential: 7%

Shares of Bharti Airtel have negated the support of the 200- day moving average (DMA) set at Rs 755.50 levels, indicating weakness and the build-up of a negative bias.

The overall formation on the daily chart points to a “Head and Shoulder” breakdown pattern, reflecting a bearish stance. The stock is trading below 50-DMA and 200-DMA, these averages placed at Rs 784 and Rs 802, respectively, have now become crucial hurdles for any reversal.

The momentum indictor, the Bollinger Band is experiencing its bands opening out, with stock price tilting downward; this reveals a strong momentum on the decline side. If the weakness continues to persist, the trend may reach to Rs 700 level. CLICK HERE FOR THE CHART

One 97 Communications Ltd (PAYTM)

Outlook: Needs to hold the 200-DMA

The stock did succeed in conquering the 200-DMA positioned at Rs 634 in recent sessions, however holding an up move over the same is very crucial. Only if the stock manages hold upward momentum over the 200-DMA, then could rally towards Rs 800 and RS 850 levels. 

The immediate supports come to Rs 560 levels, followed by Rs 515 levels. At the moment, the stock has slipped under the 200-DMA, suggesting vulnerability if fails to rebound. 

The Moving Average Convergence Divergence (MACD), a momentum indicator, has formed a negative crossover above the zero line, disclosing the commencement of selling pressure. CLICK HERE FOR THE CHART