Telecom Stocks Outlook for the week - 16.12.2013 - 20.12.2013
www.rupeedesk.inTrading in telecom
stocks is likely to be stock specific next week with Idea Cellular expected to
move sideways, while the downside in the stocks of Bharti Airtel is seen
limited. Investors next week will eye the November subscriber numbers of
companies using the global system for mobile communications platform. As on Oct
31, GSM user base stood at 683.15 mln with Bharti Airtel leading the pack at
194.87 mln as per data released by GSM body Cellular Operators Association of
India last month. After having traded negatively in the last one week, Bharti
Airtel is seen trading sideways in the coming sessions. Long accumulation of the
stock has been seen after the announcement of infrastructure sharing pact with
Reliance Industries this week. Buying by institutional investors has been seen
after the deal was announced and the pact is seen positive for both the
companies as it will help reduce their operational cost. Bharti Infratel, the
listed tower subsidiary of Bharti Airtel, will benefit from the deal and is seen
trading positively in the coming sessions. Downside for Idea Cellular is seen
limited with investors remaining largely bullish on the stock. Next week, the
stock is expected to trade near to its all-time high of about 190 rupees.
Despite having seen corrections in the last several sessions, trend for Tata
Communications is seen positive with downside being limited. The stock had
undergone profit booking lately, but is expected to make gains in the coming
sessions. Reliance Communications, which for several sessions has not been able
to cross its crucial resistance level of 135 rupees, is seen weak. Reliance
Communications is expected to continue with its weak trend with selling pressure
expected to continue in the stock.