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Telecom stocks are expected to trail the broad market next week and recoup losses made in the current week, making sort-term pullback. The National Stock Exchange's 50-stock Nifty ended above the psychological mark of 6,000 points, snapping its seven-session losing streak. Reliance Communications is expected to trade positive next week, but gains are seen limited. The company, which announced its Jul-Sep earnings this week, posted a six fold increase in consolidated net profit at 6.7 bln rupees on account of a provision write back of 4.4 bln rupees. Aggressive accounting policies are negative, with provision write-backs being credited to the income statement in two of the past three quarters. The upside for the stock is seen limited next week at 144-145 rupees and initial support is seen at 134 rupees and then at 128 rupees. Both Bharti Airtel and Idea Cellular are expected to trade with a positive trend after having gone through corrections in last few weeks. The short-term pullback for Bharti Airtel, which has commenced from 14.11.2013, is expected to continue next week. The stock is expected to reach 350-355 rupees, while support is seen at 328 rupees. The trend for Idea Cellular is seen better than Bharti Airtel, and the stock is expected to reach around 180 rupees. Support for the stock has been pegged at 164 rupees. Tata Communications is seen facing resistance at 290-295 rupees, while support is likely to be at 260 rupees. He recommended that investors may book profit at about 295 rupees, and again accumulate the stock at about 255 rupees.
Telecom stocks are expected to trail the broad market next week and recoup losses made in the current week, making sort-term pullback. The National Stock Exchange's 50-stock Nifty ended above the psychological mark of 6,000 points, snapping its seven-session losing streak. Reliance Communications is expected to trade positive next week, but gains are seen limited. The company, which announced its Jul-Sep earnings this week, posted a six fold increase in consolidated net profit at 6.7 bln rupees on account of a provision write back of 4.4 bln rupees. Aggressive accounting policies are negative, with provision write-backs being credited to the income statement in two of the past three quarters. The upside for the stock is seen limited next week at 144-145 rupees and initial support is seen at 134 rupees and then at 128 rupees. Both Bharti Airtel and Idea Cellular are expected to trade with a positive trend after having gone through corrections in last few weeks. The short-term pullback for Bharti Airtel, which has commenced from 14.11.2013, is expected to continue next week. The stock is expected to reach 350-355 rupees, while support is seen at 328 rupees. The trend for Idea Cellular is seen better than Bharti Airtel, and the stock is expected to reach around 180 rupees. Support for the stock has been pegged at 164 rupees. Tata Communications is seen facing resistance at 290-295 rupees, while support is likely to be at 260 rupees. He recommended that investors may book profit at about 295 rupees, and again accumulate the stock at about 255 rupees.
