Bharti stock was one of the best play on Telecom Growth story between 2003 and 2007. The stock rallied from Rs. 10 to Rs. 500 during that time.
The above phase of growth was pure mobile growth story. Then came long period of sideways consolidation and pain for stock. It mirrored with 2G scam, sector in turmoil, and directionless industry.
And as it always happens, during such times, the stock forms a wall for itself (well defined resistance) and then trades below it with no momentum and direction. Bharti stock built a wall around 440-450 for itself and now has traded below it for more than 7 years. The big question: when will stock breakout above 440-450? The answer: Nobody knows
There is a lesson here that stock can do nothing for long long long long long time.
How about what stock is doing right now.
2015 has been good year for Bharti. The stock first delivered a solid bounce from panic levels around 340. I did cover the stock then.
The stock delivered a solid bounce from 340 to 450 (weekly resistance). A 32% move for large cap is not bad. Post that move, stock has pulled back from resistance but seems to be holding 90 day moving average. A Bullish trader can argue for support on the stock around current levels and then breakout above 450. Will that happen - nobody knows but yes a low risk trade can be conceptualized with a stop loss below 400.
Please note I am visualizing a scenario and not making a trade recommendation. Please do your own home work and due diligence.
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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