Technical analysis of Bharti Airtel Stock

Investment Recommendation

• Buy Level: ₹1,650
• Stop Loss: Below ₹1,510
• Target 1: ₹1,780
• Target 2: ₹1,900

Technical Analysis: Bullish Signals for Bharti Airtel

Bharti Airtel’s stock has been trading in a range since August 2024, consolidating between ₹1,580 and ₹1,680. However, strong technical indicators suggest an imminent breakout:

• Above 200-Day EMA: Trading consistently above the 200-day Exponential Moving Average (EMA), a key support level that signals long- term strength.
• Strong Volume Spikes: Significant buying volume was observed on June 21, 2024, and August 30, 2024, indicating institutional accumulation.
• Breakout Potential: The stock is testing resistance at ₹1,680, and a strong move above this level could lead to a breakout toward ₹1,780–₹1,900.
• RSI & MACD Indicators:
  • The Relative Strength Index (RSI) is around 55-60, suggesting room for further upside before hitting overbought levels.
  • The Moving Average Convergence Divergence (MACD) has formed a bullish crossover, signaling potential upward momentum.
• Support & Resistance Levels:
  • Strong support: ₹1,580–₹1,600 zone.
  • Major resistance: ₹1,680–₹1,700; breakout could push prices higher.

Fundamental Analysis: Strong Catalysts for Growth

Beyond technical factors, fundamental aspects also support a bullish outlook for Bharti Airtel:

1. Strategic Partnership with Starlink
   1. Bharti Airtel has partnered with Elon Musk’s Starlink to launch high- speed satellite internet in India.
   1. This move expands Airtel’s footprint in rural and underserved markets, creating a new revenue stream and competitive edge over other telecom players.
   1. Starlink’s low-latency internet is expected to attract enterprise customers and government contracts.
2. Institutional Confidence & FIIs/DIIs Holdings
   1. Foreign Institutional Investors (FIIs) hold 24.27%, while Domestic Institutional Investors (DIIs) hold 19.52%.
   1. Strong institutional backing reflects long-term investor confidence, suggesting sustained growth prospects for the company.

• 5G Expansion & Subscriber Growth
  • Airtel is leading India’s 5G rollout, strengthening its market position.
  • The company is seeing a steady rise in subscriber base and Average Revenue Per User (ARPU).
  • As data consumption surges, Airtel’s premium pricing strategy is expected to enhance profitability.
• Favorable Industry & Economic Trends
  • The Indian telecom industry is witnessing consolidation, with Airtel and Jio emerging as dominant players.
  • Increasing    digital   adoption,    work-from-home    culture,    and enterprise demand for fast internet boost Airtel’s growth potential.

Conclusion: Bullish Outlook for Bharti Airtel

Risk-Reward Ratio: Favorable, as the potential upside (₹1,780–₹1,900) outweighs the downside risk below ₹1,510.

With strong technical momentum, institutional backing, and a transformational partnership with Starlink, Bharti Airtel presents a buying opportunity at ₹1,650, with upside targets at ₹1,780 and ₹1,900.

Key Takeaways:

✅ Technical breakout imminent; strong volume above ₹1,680 is crucial.

✅     Institutional    investors     remain     bullish    on    long-term    growth.

✅   Starlink   deal   &   5G   expansion   provide   strong   growth   catalysts.

✅ High risk-reward ratio makes this trade attractive.

Investment Strategy:

• Entry: ₹1,650
• Stop Loss: Below ₹1,510
• Target 1: ₹1,780
• Target 2: ₹1,900

Until then, Happy Trading!

Commodity Samachar Securities
We Decode the Language of the Markets

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