Technical Analysis

Bharti Infratel (₹306.75): BUY

Gurumurthy K BL Research Bureau | Updated on February 07, 2019 Published on February 08, 2019

The outlook for the stock of Bharti Infratel is bullish. The stock surged 3.7 per cent on Thursday breaking above the psychological resistance level of ₹300. The stock has formed a strong base between ₹285 and ₹300 for more than a week. The strong and subsequent breakout above ₹300 on Thursday gives initial signs of the long-term downtrend getting reversed. The downtrend has been in place since October 2017 is getting reversed.

The region between ₹300 and ₹295 will now act as a strong support. Dips to this support zone is likely to attract fresh buyers. Indicators on the charts are also positive. The 21-day moving average has crossed over the 200-day moving average. This indicates that the downside could be limited.

The stock is likely to extend its upmove towards ₹330 and ₹335 in the coming days. A further break above ₹335 will then increase the likelihood of the contract extending its rally to ₹350 thereafter. Traders can go long at current levels and also accumulate on dips at ₹301. Stop-loss can be placed at ₹293 for the target of ₹332. Revise the stop-loss higher to ₹309 as soon as the stock moves up to ₹313.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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