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Buoyed by the optic fibre network sharing deal with Reliance Industries Ltd, Reliance Communications Ltd is seen trading with a positive bias next week. On Tuesday, Reliance Communications announced that it has signed a 12-bln-rupee pact with Reliance Industries, wherein it would share its fibre optic network with the latter's telecom arm Reliance Jio Infocomm. The stock is expected to find a very strong support at 60 rupees and is expected to stay above that level in the coming sessions. Retrenchment to lower levels is unlikely now, with high number of put options recorded at 60 rupees strike price. High accumulation of put option contracts on a particular strike price indicates the support, while high accumulation of call option contracts on a particular strike indicates resistance. Resistance for the stock in next week is expected to be at 67-70 rupees. Stocks of Bharti Airtel are likely to trade in range as the 2G trial court has summoned the head of the company Sunil Bharti Mittal among others on Thursday, in the case of grant of excess spectrum. Mittal has, however, appealed against the summon in the Supreme Court, which is scheduled to take up the matter on Monday. The stock is expected trade in the range of 270-285 rupees but if the level of 285 rupees is breached on the upside, then the stock may rise to as much as 300 rupees. With maximum number of accumulation of put option seen at the strike price of 260 rupees, the stock is expected to find a strong support at around those levels.
