Technical Pick – Idea Cellular
• IDEA is finding support at 74.5 and resistance above 76.50.
•On Hourly chart, IDEA is showing breakout point above 76.5 level.Break and sustain above 76.5 will see nonstop rally till 78.5--80++ in weeks to come.
•IDEA Technologies has been trading in a broader range of 66--123 for last one year.
•MACD too has given the positive crossover (Buy signal) which indicates that upper side seems certain in it.
•Traders don’t go for aggressive or positional selling at all because trend looks positive and we expect rally to remain continue till 78.5--80+++mark in coming weeks.
For positional trade, stop loss seeing below 74.5 on closing basis which in unlikely to breach in near terms.
Positive Factor
The merger of Vodafone India and Idea Cellular is on track and is expected to be completed in calender year 2018, a top Vodafone official said today.
Vodafone India MD and CEO Sunil Sood said "absolutely", when asked if the merger of the two telecom firms is on course.
He spoke on the sidelines of India Mobile Congress here.
Stating that the merger process goes through various stages, including approvals from the CCI, Sebi, the NCLT and the telecom department, Sood said "we feel all of them are on track and in fact, we are going ahead on schedule".
On the timeline for completion of the merger, he said it will happen by 2018. Earlier this year, Vodafone India and Idea Cellular had agreed to merge their operations to create the country's largest telecom operator worth of more than USD 23 billion with a 35 per cent market share.
The combined entity of Vodafone India and Idea Cellular, which are currently India's number 2 and 3, respectively, would dislodge Bharti Airtel to counter the fierce price war in the world's second-largest telecom market.
Trading Recommendation (27 Sep 2017)
Buy IDEA above 76.5 and for the initial upside target of 78.5--80++ mark with stop loss below 74.5 on closing basis.
More will update soon!!
More will update soon!!
