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Thursday, November 4, 2010

Airtel Falling: Support @ 321 and then at 318


AIRTEL Daily NSE Stock Chart Technical Analysis:

As discussed in earlier posts on Airtel, the stock continues to fall for the 3rd day today. 

The price opened at 330.2 and closed at 326.15.

Market Outlook:  The price will fall further as well.  The points of support which might stop this fall are at 321 and 318.  If 318 is breached downwards with heavy intraday selling, it time to prepare to go short preferably a couple of days after that.

Technical Indicators:

The selling increased compared to yesterday, which shows that people are interested booking profits at this price level.  This is driving the price downwards.

News:

Watch out for any confirmation on the Qualcomm purchase deal.

As number portability (MNP) comes into play, Airtel is slated to be a big loser as it is the No 1 player.  This can make the numbers shaky for Airtel and affect the stock price negatively and then it might take time to recover from the fall.  Keep an eye on the MNP and its implications.

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