This large-cap stock witnessed a breakout of cup pattern; signalling a potential upside of 19.5%

This large-cap stock witnessed a breakout of cup pattern; signalling a potential upside of 19.5%

Indian Market
by 5paisa Research Team Last Updated: Dec 15, 2022 - 09:12 pm 15.7k Views

Bharti Airtel is one of the world’s leading providers of telecommunication services with a presence in 18 countries representing India, Sri Lanka, and 14 countries in Africa.

On Tuesday, the stock advanced more than 2%, marked a fresh high and also featured among the top three gainers on Nifty. The stock has a weightage of nearly 2.2% in the Nifty50 index. 

On the weekly chart, the stock has witnessed a breakout of the stage-1 cup pattern which has a depth of nearly 19.5% and a length of 21 weeks, along with this the stock has witnessed a breakout of nearly 62-weeks long consolidation pattern and the depth of this broad consolidation is almost equivalent to the depth of cup pattern. Hence, on the upside, in the medium to long term, the stock can see achieving the pattern target. 

Interestingly, the stock is meeting the majority of the characteristics of CASNLIM. The stock has an EPS Rank of 82 which is a good score indicating consistency in earnings, an RS rating of 51 is because the stock was seen consolidating for as long as 62 weeks, however, it is seen improvement lately. Buyer demand is at B+ which is evident from recent demand for the stock. A master score of B is close to being the best. 

On the daily chart, the stock is trading above its key moving averages. Meanwhile talking about the RSI on the monthly, weekly and daily time frames, on all the time frames the RSI is in bullish territory i.e. above the 60-mark. On the daily and weekly time frame, the RSI has moved above its prior swing high, which is positive for the stock. The daily MACD is pointing northward while sustaining above its nine periods average and it is also above its prior swing high thus validating positive bias in the stock. 

The stock may face immediate resistance around levels of Rs 800 as it’s a psychological number, while on the upside in the medium to long term the stock can touch levels of Rs 920. 

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