Telecom Stocks Outlook for the week (28.05.2012 - 01.06.2012) Telecom stocks next week will take cues from the outcome of the second round of the Telecom Commission meet on Saturday, which will take a final view on the revised recommendations of the Telecom Regulatory Authority of India.
The Telecom Commission, which met on Thursday, deliberated part of the recommendations by the regulator on spectrum auction norms. The commission in its meeting decided that minimum of 10 Mhz of spectrum should be made available for auction, against 5 Mhz recommended by TRAI. The commission also favoured the liberalisation of spectrum. The commission is expected to give its final view on the contentious issue of spectrum pricing on Saturday. TRAI has suggested a reserve price of 36.22 bln rupees per 1 Mhz of spectrum in the 1800 MHz band at a pan-India level, which has been termed as exorbitantly "high" by telecom service providers. Shares of Bharti Airtel are seen trading with a positive bias next week as investors took long positions in its futures contracts, a derivatives analyst said. The stock had gained 6% in the last two trading days this week after the company announced that it has acquired 49% stake in Qualcomm's AP's India entities. Bharti Airtel has made an initial investment of approximately $165 mln to acquire 49% interest in Qualcomm AP's India entities that hold broadband wireless licences in Delhi, Mumbai, Haryana, and Kerala. However, the trend in the stock is currently volatile and a definite upward movement is unlikely to emerge until the stock crosses 310-312 rupees in the near term, a technical said. Fresh long positions were also seen in the futures contracts of Reliance Communications. In the near term, support for the stock is seen at 63-64 rupees and resistance at 68-70 rupees, the technical analyst said. Mahanagar Telephone Nigam Ltd, which also had build-up of long positions in its futures contract is seen gaining more next week. The stock gained around 4.3% today and 1.75 mln shares were traded in comparison with its one-month average volume of 0.99 mln shares. Resistance for the stock is seen at 28 rupees and support at 21 rupees. The broad market next week is expected to be volatile on account of the expiry of the May futures and options contracts series Thursday. -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
