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The outlook for the stock of Bharti Infratel is bullish. The stock surged 3.7 per cent on Thursday breaking above the psychological resistance level of ₹300. The stock has formed a strong base between ₹285 and ₹300 for more than a week. The strong and subsequent breakout above ₹300 on Thursday gives initial signs of the long-term downtrend getting reversed. The downtrend has been in place since October 2017 is getting reversed.
The region between ₹300 and ₹295 will now act as a strong support. Dips to this support zone is likely to attract fresh buyers. Indicators on the charts are also positive. The 21-day moving average has crossed over the 200-day moving average. This indicates that the downside could be limited.
The stock is likely to extend its upmove towards ₹330 and ₹335 in the coming days. A further break above ₹335 will then increase the likelihood of the contract extending its rally to ₹350 thereafter. Traders can go long at current levels and also accumulate on dips at ₹301. Stop-loss can be placed at ₹293 for the target of ₹332. Revise the stop-loss higher to ₹309 as soon as the stock moves up to ₹313.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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