Because stock is on the edge and a small push from bears will break the stock below support
Here's the Daily Chart
Bharti stock has done well to hold 340 for more than 3 months but with markets in bearish grip - the stock is vulnerable. Having said that - such times offer great opportunity for believers to buy the stock at support levels. It's going to be interesting contest. What needs to be seen - can stock protect 340 levels. Right now - the chances that stock will 340 is fifty fifty.
Valuations not that bad. As per report on moneycontrol: The company's trailing 12-month (TTM) EPS was at Rs 28.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio at cmp is 12.
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