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On Tuesday, the stock of Idea Cellular jumped 4.8 per cent accompanied by extraordinary volume on strong Q1 earnings. As this could be a key trend reversal for the stock, traders with a short-term perspective can buy it. Following a medium-term decline from the October 2013 peak of ₹188, the stock found support in the band between ₹126 and ₹130 in February. Since then, the stock has been on a sideways consolidation phase between ₹130 and ₹146.
In late June, the stock took support at ₹130 and started trending towards the upper boundary, breaching its 21- and 50-day moving averages. The indicators on the daily chart have entered the positive territory implying upward momentum. The indicators on the weekly chart are steadily trending upwards. A conclusive rally above ₹146 will alter the stock’s sideways trend and take the stock northwards to ₹152.5 and ₹155.5. Buy the stock with a stop-loss at ₹143.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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