Short-term traders can look to buy the stock on dips for a possible target above 1100 levels in the next 3-4 weeks, suggest experts.
The telecom stocks which are part of the S&P BSE Sensex index, hit a record high of Rs 1046 on 5th December 2023, but it failed to hold on to the momentum.
The Sensex stock formed a strong base above 960 levels which was a crucial resistance level in October 2023.
After hitting a record high in December, the stock took support above the same and bounced back. The support of 960 also coincides with the 50-DMA on the daily charts.
The Supertrend indicator also triggered a buy earlier in December on the daily charts. The stock rose more than 1% in a week and over 8% in the last 3 months.
In terms of price action, the stock is trading below 5-DMA but above 10,30,50,100 and 200-DMA on the daily charts, which is a positive sign for the bulls.The daily Relative Strength Index (RSI) is at 66.4. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.
“Bharti Airtel is in continuous uptrend and forming higher top-higher bottom formation on higher degree charts. It has retested breakout on the daily chart and is inching higher,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“Overall, chart setup is positive, and small declines are being bought into. It has formed a strong bullish candle on a daily scale and supports are gradually shifting higher,” he said.
The momentum indicator Relative Strength Index (RSI) is positively placed which indicates strength in the stock.
“Looking at the overall chart structure we are recommending buying the stock with a stop loss below 985 levels on a closing basis for a target towards 1111 zones,” recommended Beriwal.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)
