Portfolio

Bharti Infratel (₹204): Sell

Akhil Nallamuthu BL Research Bureau | Updated on November 14, 2019 Published on November 14, 2019

The stock of Bharti Infratel began its major downtrend in October 2017, from a high of ₹482.8. Since then there has been no respite. The bearish trend has not lost momentum, except for few consolidation phases. The stock attempted a recovery in the early part of 2019 appreciating from ₹250 to ₹335. But it could not extend its gain beyond that level and started to consolidate before witnessing a fresh sell-off in April. The stock tumbled and registered a new 52-week low of ₹176.35 last month and then recouped some of its losses by advancing to ₹230 levels in the beginning of this month.

On Thursday, the stock opened lower at ₹205 against the previous close of ₹218.2 and the year-to-date return on the stock stands at negative 20 per cent. The price has broken below the considerable support of ₹215, indicating that the stock could resume next leg of downtrend in the coming days. In the weekly chart, both the relative strength index and the moving average convergence indicator, are in negative region and continue to exhibit weakness.

Hence, the long-term bear trend seems to be intact, and the stock will most likely continue to fall from current levels. So, one can initiate fresh short position on rallies with stop-loss at ₹220 with a potential target of ₹178.

Supports: ₹176 and ₹164

Resistances: ₹215 and ₹230

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Published on November 14, 2019
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