Infratel tops Telecom index, gives trendline breakout
As almost all sectors were trading in green on the last day of the week, telecom sector is not an exception. After almost a continuous fall, because of unlikely employee salary hike, telecom sector took some breather at lower levels. Hopes for a favourable policy decisions in the upcoming New Telecom Policy 2018 may help the sector bounce back.
Coming back to Friday’s movement, Bharti Infratel, the telecom tower company, promoted by Bharti Airtel, surged 1.5 per cent plus in trade gaining top position in the telecom index and also ranked among the top five in the Nifty50 benchmark index.
Technically, the stock of Infratel has been trading in a small range of 320 to 355 since January 19, 2018. Since March 28, the stock has seen consolidation, but with intraday volatility. Meanwhile, the stock also resisted near 340 levels on almost all days on a closing basis. On Thursday, it closed at 340.70 level and on Friday opened at 341 breaching the consolidation and hit above 348 levels.
Considering the entire range-bound movement from January 19, the stock also gave a downward sloping multiple point trendline breakout at 346.50 levels. The 14-period RSI also broke above its resistance zone of 53 and is trailing above 56. Relatively lesser volume was resisting the stock from gaining ground, but on Friday it gave 1.19 times volume spurt. We may see some position action in the stock in the upcoming sessions.