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Trade in telecom stocks is expected to be subdued next week as investors would remain wary of large bets ahead of the Jul-Sep earnings to be announced by industry heavyweights. The earnings numbers of telecom companies are expected to be sombre on account of a seasonally weak quarter leading to low growth in traffic, which was also impacted by tariff hikes introduced by the companies to improve margins. Investors will eye the result of Bharti Airtel, to be announced on Wednesday. We expect the telecom giant is expected to report a 9% sequential rise in consolidated net profit at 7.53 bln rupees. Strong upside to Bharti Airtel is seen in the coming sessions, but the stock is expected to decline to about 340 rupees and investors may take long positions at those levels. For next week, resistance for the stock is pegged at 365 rupees. After reporting a better-than-expected result for Jul-Sep, Idea Cellular is expected to see technical correction in the coming sessions. Idea's Jul-Sep net profit of 4.48 bln rupees. Idea Cellular is expected to see profit booking and decline to as much as 160 rupees next week after having seen a good run in the last few weeks. Reliance Communications is expected to continue with its weak trend, with the stock expected to decline as low as 130 rupees in the coming sessions.
Trade in telecom stocks is expected to be subdued next week as investors would remain wary of large bets ahead of the Jul-Sep earnings to be announced by industry heavyweights. The earnings numbers of telecom companies are expected to be sombre on account of a seasonally weak quarter leading to low growth in traffic, which was also impacted by tariff hikes introduced by the companies to improve margins. Investors will eye the result of Bharti Airtel, to be announced on Wednesday. We expect the telecom giant is expected to report a 9% sequential rise in consolidated net profit at 7.53 bln rupees. Strong upside to Bharti Airtel is seen in the coming sessions, but the stock is expected to decline to about 340 rupees and investors may take long positions at those levels. For next week, resistance for the stock is pegged at 365 rupees. After reporting a better-than-expected result for Jul-Sep, Idea Cellular is expected to see technical correction in the coming sessions. Idea's Jul-Sep net profit of 4.48 bln rupees. Idea Cellular is expected to see profit booking and decline to as much as 160 rupees next week after having seen a good run in the last few weeks. Reliance Communications is expected to continue with its weak trend, with the stock expected to decline as low as 130 rupees in the coming sessions.
