With the broad market expected to remain subdued in the near-term
due to the rupee's volatility, trade in telecom stocks next week will be muted, but
some individual stocks are expected to buck the trend.
The rupee declined to an all-time low of 62.03 against the US
dollar today due to Foreign
Institutional Investment outflows on signs of US economy's
recovery and on possibility of Federal Reserve ending the quantitative easing program, making
US bonds more attractive for investment. Data released on Thursday showed that
US jobless claims fell to their lowest levels since Oct 2007.
Bharti Airtel Ltd and Reliance Communications Ltd are expected to
trade bearish next week, while Idea Cellular Ltd is expected to maintain its uptrend.
Reliance Communications is also expected to trade weak and investors may
avoid entering the stock at the current levels. Entering at the current levels will
not be a wise decision as the stock has entered a bearish phase.
With Idea Cellular making new highs, the trend in the stock
remains bullish and there are no signs that its rally has run out. Investors may again enter the
stock at lower levels and book profits.
Long-term trend in Tata Communications Ltd is bearish even when
the stock has been able to make small gains in the last few weeks. Tata
Communications ended the week's trade up 7.4% at 159.70 rupees. The bias for the stock still
remains bearish, unless it is able to close above the 200-rupee mark.
