Buy Bharti Airtel in range of Rs. 426-436
Target: Rs. 515
Stop Loss: Rs. 392
Time frame: Three months
Derivatives & Quantitative Outlook
In the past three months, Bharti Airtel has underperformed the Nifty by falling 30%, compared to 9% upside in the Nifty. The fall in Bharti Airtel was due to negative news flows. Reduced weightage in MSCI and FTSE also added pressure and has dragged the stock lower.
Recently, the Nifty witnessed long liquidation. Due to that, the October series of Nifty open interest (OI) is one of the lowest seen in the last 10 years. At the same time, most of the stock futures have started the October series with significantly low open interest. In contrast, the OI in Bharti has remained prominent while the current OI in the stock is the highest seen in the last 10 year. We believe the recent short positions in the stock are still intact. This is expected to get covered near the support zone of Rs. 400-420 levels.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_BhartiAirtel_Oct20.pdf
Shares of BHARTI AIRTEL LTD. was last trading in BSE at Rs.432.35 as compared to the previous close of Rs. 420.9. The total number of shares traded during the day was 397545 in over 6260 trades.
The stock hit an intraday high of Rs. 434.45 and intraday low of 424.15. The net turnover during the day was Rs. 171015023.