Idea Cellular has support at Rs 34-38: Mathew

Technical Analyst, E Mathew is of the view that Idea Cellular has support at Rs 31-34.

Mathew told CNBC-TV18, "Bharti has undoubtedly shown resilience. But I know there are a lot of FIIs and mutual fund for whom Bharti is a compulsive buy. But I am not so convinced, I think when the market rallies Bharti would certainly participate in a pullback rally, you could see it go up all the way possibly to even by around Rs 150 but I would not go and give a outright buy on Bharti, may be I would give a trading buy right now. I am really wondering that excitement, which was there in this sector earlier the stock market has surely got discounting mechanism, which tells you something in advance. It is not Bharti alone, if you look at Reliance Communications and now coming in specific to Idea the way that stock broke down below Rs 75-77 was alarming to say the least. Of course that happened in the month of October after some pretty bad results came from Idea, but the way it broke down, I think a long-term investor would have also got perturbed."

He further added, "It has very strong support at Rs 34 and Rs 38. So my advice would be, if the market rallies and you have a rally in the telecom sector a trading rally, one should look to get out of Idea Cellular on a rally and if one is lucky enough to get at the price above Rs 54 and if the stock rallies above Rs 54, it may go back to that level of Rs 75 I think that is the level one should plan to get out of the stock."

Disclosure: Analyst, his family members and his group companies do not have any position in the above stock.

Source: Moneycontrol