Chart Check: Breakout from a double bottom pattern makes this Sensex stock from telecom space an attractive buy
Bharti Airtel Ltd, part of the telecom space, has given a breakout from a double bottom pattern in August 2023 and is sustaining above the same which indicates crucial support for the stock.
The neckline of the double bottom pattern was placed at Rs 900. The stock closed at Rs 911 on 22 September 2023.
As long as the stock holds above this crucial support, a bounce back towards 980-1000 levels is possible, suggest experts.
Bharti Airtel, which is also part of the S&P BSE Sensex, hit a high of Rs 877 in November 2022 but it failed to hold on to the momentum.
The stock underwent a steep correction which resulted in a rounding bottom formation.
The stock took support above Rs 730 in February 2023 and then again in March 2023 before rising sharply.
The momentum helped the stock to reclaim crucial moving averages on the daily charts and hit a fresh record high of Rs 948 on 15 September 2023.
The stock witnessed some profit booking which is in line with the trend seen in benchmark indices amid weak global cues, but it managed to stay above the crucial support of 880-900.
Investors with a short-to-medium term holding period can look to accumulate the stock in the price range of Rs 900-920, suggest experts.
In terms of price action, the stock is trading below 5-DMA but above 10,20,30,50,100 and 200-DMA on the daily charts.
The daily Relative Strength Index (RSI) is at 59.5. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.
The daily MACD is above its center and signal Line, this is a bullish indicator.
“Despite the recent volatility in the broader market, Bharti Airtel stock has managed to sustain its upward trend. The stock has formed a 135-day rounding bottom pattern, which was
