Bharti Airtel – A case study

Dharam Chand Sethia Uncategorized 3 Comments

Telecom stocks have been in news a lot.

  • Supreme Court Case
  • Tariff Hike
  • Investments in Jio Platforms
  • Speculation in Future business model of IDEA

I am going to write on 3 actions in markets related to Bharti Airtel.

Price Action – Bharti has broken a crucial Support area of 508-510 recently and it’s below it’s 200 EMA.

Derivatives Action – From 6 crore shares in MAY series to 14 crore shares in September series with a fall in price.(yellow bars in lower panel are Open interest bars)

 

1 year OI

Below is 5 year chart of Bharti and Open interest is at all time high.Bharti has never witnessed such High OI.

Fund Actions – GIC Singapore has been cutting their stake.From 3.62% in Jan 2020 to 1.7% in June 2020.As per this graphic below other than GIC the large funds are LIC , and various MFs.(GIC stake is in purple color shade)GIC Singapore

 

Based on these actions i have a short bias in short to medium term on Bhartiartl. News flow that i am closely watching are – Tariff hike and action by VI(vodafone idea).

A trader should respect Price Action and an investor should respect fundamental of the business.As a data person i also respect Actions by market participants a lot.

 

Disclaimer – I am not sebi registered. Kindly consult your financial Advisor.

Charts – MyFnO, bajaar.me, Zerodha.

Happy Trading and Investing.

Comments are welcome.

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