5G Auction: Bharti Airtel, Voda Idea struggling below 200-DMAs, charts show

Despite the buzz in the telecom sector with the ongoing 5G spectrum auction, Bharti Airtel and Voda Idea need to break and sustain above their respective 200-DMAs for hopes a rally to emerge.

5G telecom auction began on Tuesday with major players Reliance Jio, Bharti Airtel, Vodafone Idea and a new comer Adani Group in the fray to get 5G spectrum that would allow them to offer broadband at a speed ten times higher than 4G. 

At the end of the Day 1 of the bidding, telecom firms reportedly bought spectrum worth more than Rs 1.45 trillion across frequency bands including 5G, exceeding all expectations. Even the much-acclaimed and expensive 700-MHz spectrum was picked up by telecom players. READ MORE

Going this backdrop, here's a quick technical check on telecom players:-

BSE Telecom Index

Outlook: Trend above 50-DMA looks promising

While the index did manage to exhibit a bullish undertone by conquering the 50-day moving average (DMA), the major long-term trend breakout awaits at the 200-DMA mark.  As per the current market dynamics, the index needs to scale the 1,678-mark, which is its 100-DMA. Thus, until the index defends 50-DMA it can rally to 1,739 mark, its 200-DMA. CLICK HERE FOR THE CHART

Bharti Airtel Ltd (BHARTIARTL)

Outlook: 200-DMA, a crucial hurdle

This year from May onwards, the stock price of Bharti Airtel has been a struggling phase. A breach of the 200-DMA has dampened the positive bias, even though the stock made several attempts to regain ground over the crucial average.  Failing to cross Rs 703, its 200-DMA, has pushed stock to fresh lows on YTD (year to date) basis. The immediate support for the stock now exists at Rs 660 level.  CLICK HERE FOR THE CHART

Vodafone Idea Ltd (IDEA)

Outlook: Struggling to cross 200-DMA and 200-WMA

Shares of Vodafone Idea not only trade below the 200-DMA, but have also got supressed under the 200-weekly moving average (WMA), presently placed at Rs 10.70-mark. The chart structures appear unattractive and have failed to lure market participants to sight any opportunities. The immediate support for the stock comes at Rs 8 and as long as the stock does not cross the 200-DMA, set at Rs 10.60, the trend would continue to exhibits sluggishness.  CLICK HERE FOR THE CHART