Today’s pick is BHARTIARTL [stockquote]BHARTIARTL[/stockquote]. The stock started the year with a down-trend, that lasted until September, where it got support at Rs. 250 levels. Since then it has been on an uptrend and it saw a 52 week high of Rs. 370 in mid-January. In the last three months, the stock has moved +20% vs. +4% of the Nifty’s.

BHARTIARTL technical analyis chart

Oscillator RSI and CMO are nearing the over-sold territory. The stock is trading close to the lower end of Bollinger band giving an upward bias. Short-term technical just saw a 18×9 bearish cross-over.

The MACD line and the signal line are moving away from each other and suggest the short –term downtrend to continue. Also, both long-term and short-term GMMA lines are very close to each other not giving any long-term direction to the stock.

BHARTIARTL correlation chart

BHARTIARTL’s average correlation with the Nifty is 0.49 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

BHARTIARTL volatility chart

BHARTIARTL has a historical volatility in the range of 0.4 to 0.7. The scrip’s volatility is currently in the middle of the range.

Given these technicals, we suggest a short-term sell. For the long-term, we will have to wait and watch how the GMMA lines unravel themselves and a bullish call can be made if it holds the current trendline. However, we suggest having trailing stop-losses in case sudden trend-reversal were to take place.

Read what experts have to say about the Indian telecom sector here.

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