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Trade in telecom stocks is expected to be mixed next week, with Bharti Airtel Ltd expected to trade sideways and consolidate, while Idea Cellular Ltd and Reliance Communications Ltd are expected to see profit booking. Investors will also start eying the Jul-Sep results of the telecom companies, which are expected to be announced in the upcoming weeks. We expect a soft quarter for the Indian wireless names with weak voice volumes and a modest (in comparison to 1QFY14) RPM (revenue per minute) uptick. Bharti Airtel is expected to consolidate next week at around the current levels and trade in a narrow range. Support for the stock is seen at around 320 rupees, while resistance is expected at about 335 rupees. Idea Cellular and Reliance Communications are expected to see some profit booking. But while trend for Idea Cellular is seen positive, Reliance Communications is seen inherently weak. Tata Communications is expected to trade in a positive trend and make gains. The recent rally in the stock is expected to continue and the trend for the stock is on the upside. Earlier in the week, the company informed that it has formally entered into negotiations with Vodacom, subsidiary of Vodafone Group Plc, to sell its entire stake in its South African arm Neotel.
Trade in telecom stocks is expected to be mixed next week, with Bharti Airtel Ltd expected to trade sideways and consolidate, while Idea Cellular Ltd and Reliance Communications Ltd are expected to see profit booking. Investors will also start eying the Jul-Sep results of the telecom companies, which are expected to be announced in the upcoming weeks. We expect a soft quarter for the Indian wireless names with weak voice volumes and a modest (in comparison to 1QFY14) RPM (revenue per minute) uptick. Bharti Airtel is expected to consolidate next week at around the current levels and trade in a narrow range. Support for the stock is seen at around 320 rupees, while resistance is expected at about 335 rupees. Idea Cellular and Reliance Communications are expected to see some profit booking. But while trend for Idea Cellular is seen positive, Reliance Communications is seen inherently weak. Tata Communications is expected to trade in a positive trend and make gains. The recent rally in the stock is expected to continue and the trend for the stock is on the upside. Earlier in the week, the company informed that it has formally entered into negotiations with Vodacom, subsidiary of Vodafone Group Plc, to sell its entire stake in its South African arm Neotel.
