Chart Check: This telecom stock at record high likely to surpass Rs 1,000 mark in next 2-3 quarters

, part of the telecom space, which touched a fresh record high of Rs 815 on Monday, could well surpass Rs 1,000 level in the next 2-3 quarters, based on chart patterns.

The S&P BSE Sensex stock rallied more than 27 per cent from its 52-week low of Rs 629 recorded on July 14, 2022. The stock saw almost a vertical upmove since July.

Short-term traders who missed the rally seen post June can look to enter the stock now or on dips for a possible target above Rs 1,000 in the next 2-3 quarters, suggest experts.

The telecom stock recorded its multi-year breakout in June 2020 quarter and since then it has been moving higher.

Although, since November 2021, the stock largely moved in a range where Rs 780 acted as a stiff resistance while levels above Rs 600 acted as strong support. The stock recently gave a breakout from this range last week to hit a fresh record high of Rs 815.

The recent price action suggests that bulls are here to stay. It rose over 5 per cent in a week, and nearly 12 per cent in a month, Trendlyne data showed.


Agencies

The stock is trading well above crucial short-and-long-term moving averages of 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.

The relative strength index (RSI) is at 66.7. RSI below 30 is considered oversold and above 70 is considered overbought.

“This stock posted its multi-year breakout in June 2020 quarter at Rs 532 levels saw a strong leg of upmove. It can be observed that the stock after its rise, was in consolidation for the last 3-4 quarters where the lower end was around Rs 630 and the higher end at Rs 780 levels,” Sujit Deodhar, Head – Technical Analyst, Wellworth Share and Stock Broking, said.

“This stock witnessed a strong breakout in last quarter with a big bullish bar and the target projected for the next leg of upmove can be placed at Rs 1,035-1,040 levels in next 2-3 quarters,” he said.

Any dip towards Rs 760-780 levels offers a great opportunity in this stock and a stop loss below Rs 745 should be placed for the trade, recommends Deodhar.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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