Bharti Airtel News Creates Buying Opportunity

JC Parets
May 26, 2020

Bharti Airtel is in the news this week as its parent company Bharti Telecom decides to sell $1bn in stock to retire debt.

We highlighted Bharti Airtel ahead of its breakout in early May and spoke about the relative strength in Telecom stocks last week.

In this post we're going to outline why the weakness created by this news likely presents a long-term buying opportunity in the stock.

Here's Bharti Airtel's weekly chart showing its 12-year base breakout from earlier this month. Momentum has waned a bit on the upside, but overall this structural breakout remains intact as long as prices are above 490.

Click on chart to enlarge view. 

Here's the relative chart of Bharti Airtel vs the Nifty 50. This outperformance shows accumulation by institutions and suggests that any meaningful weakness will likely be met with buyers.

Both the absolute and relative trends in Bharti Airtel suggest that any short-term weakness created by this week's news should be viewed as a buying opportunity. As long as the stock is above 490 on an absolute basis, its long-term uptrend remains intact and suggests much higher prices in the months/quarters ahead.

Thanks for reading and please let us know if you have any questions.

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Allstarcharts Team

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