Analyzing India

This Telecom Stock Seems To Be Giving Up...

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The upper extended trend line shows that the Double Top breakout not only fizzled out, but the price action failed to move past that double top resistance several times. This has reinforced the credibility of this resistance.

Presently, the price has slipped below the 50-DMA.

The daily MACD has shown a negative crossover; it is bearish and trades below its signal line. The RSI has marked a fresh 14-period low, which is bearish. The indicator also appears to be breaking down from multiple bottoms to a new low.

The stock is rotating in the southwesterly direction on the RRG when benchmarked against the broader NIFTY 500 Index. The RS Line against the NIFTY 500 has already slipped below its 50-DMA and is trending lower.

If the price action moves in the expected direction, then the stock may test the 535-530 levels. Any move above 575 would negate this view.


Milan Vaishnav, CMT, MSTA | Consulting Technical Analyst | www.EquityResearch.asia


Disclosure pursuant to Clause 19 of SEBI (Research Analysts) Regulations, 2014: Analyst, Family Members or his Associations holds no financial interest below 1% or higher than 1% and has not received any compensation from the Companies discussed.

Milan Vaishnav
About the author: , CMT, MSTA is a qualified Independent Technical Research Analyst at his Research Firm, Gemstone Equity Research & Advisory Services in Vadodara, India. As a Consulting Technical Research Analyst and with his experience in the Indian Capital Markets of over 15 years, he has been delivering premium India-focused Independent Technical Research to the Clients. He presently contributes on a daily basis to ET Markets and The Economic Times of India. He also authors one of the India's most accurate "Daily / Weekly Market Outlook" -- A Daily / Weekly Newsletter,  currently in its 15th year of publication. Milan's primary responsibilities include consulting in Portfolio/Funds Management and Advisory Services. His work also involves advising these Clients with dynamic Investment and Trading Strategies across multiple asset-classes while keeping their activities aligned with the given mandate. Learn More
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