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Tech view: Bharti Airtel may rally another 15% once it scales all-time high

On the monthly time frame, the breakout above Rs 500 levels earlier has triggered strong upward momentum

Bharti Airtel
Bharti Airtel
Avdhut Bagkar Mumbai
2 min read Last Updated : Jan 13 2021 | 12:05 PM IST
Bharti Airtel, in a regulatory filing, on Tuesday, said it is initiating the process to revise its foreign investment limit to 100 per cent, with immediate effect, after receiving required regulatory approvals for 100 per cent foreign direct investment (FDI) in its downstream companies. Consequently, the telecom company's shares rallied 6.35 per cent to Rs 601.70 on the NSE on Wednesday, trading close to its all-time high of Rs 612.

Post revision of its foreign investor limit, its weightage in MSCI should go up, resulting in significant inflows into the stock, ICICI Securities said in a note. The brokerage expects Bharti Airtel to lead subscriber addition in the October-December quarter (Q3FY21) aided by Vodafone Idea churn and challenges faced by the new operator due to farmer's protest. READ MORE

From a technical viewpoint, this counter is headed towards the all-time high of Rs 612 levels on the NSE. Once this mark is surpassed, the upside may open doors for the uncharted territory of Rs 670 and Rs 710 levels, from a medium-term scale. The closing basis support stays at 585 levels.

The Relative Strength Index (RSI) has started showing upside bias with momentum staying in favour of bulls, in its overbought category. This strength shows aggression which may push the stock price to higher levels in the coming sessions, as per the daily chart.

When looked on the bigger, monthly, time frame, the breakout above Rs 500 levels earlier has triggered strong upward momentum. This counter is heading higher while crossing every resistance and absorbing the selling pressure with aggressive longs. CLICK HERE FOR THE CHART

Topics :Bharti AirtelFPI sharestelecom sectorsBuzzing stockstechnical analysisstocks technical analysis