Indian stock market is in secular bull trend where every stock and sector seems to be rising with the broader market trend except Telecom sector. The top 3 telecom companies have made no bullish progress in last 6-9 months.
- Reliance Communications
- Idea Telecom
- Bharti Telecom
Let us look at the chart of all 3 stocks.
As you can see in the chart above: Reliance Communications stock turned around above 110 in June 2013. Post turnaround - stock did rally to 150 but post that move - it's trapped in a range.
As you can see in the chart above: Idea stock is stuck in a range between 130 and 150.
As you can see in the chart above: Bharti stock has created a well defined resistance at 370 and is stuck below it.
What does this mean?
It appears Telecom sector has totally fallen out of favor. Keep an eye on key breakout/resistance levels to spot a turnaround in the sector
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers