Airtel shares snap 3-day gains to drop over 3%; should you buy, sell or hold?

As per the latest business developments, Bharti Airtel shares snapped a three-session gaining streak on Monday, falling more than 3 percent amid earnings booking.

The shares settled at Rs 1,830.20 per share on the NSE, down 3.33 percent.

The stock had advanced more than 3 percent in the previous three sessions.

Pravesh Gour, Senior Technical Market observer at Swastika Investmart, stated Bharti Airtel has given back a significant portion of its recent recovery, with the stock falling over 3 percent.

"The chart reveals the stock trading around Rs 1,832, below its short- and medium-term moving averages, indicating that the near-term trend has softened," Gour stated.

The 9-day and 20-day averages have turned softer, while the stock stays below the 50-, 100- and 200-day averages, keeping the broader technical structure under pressure, he stated.

The immediate backing zone is around Rs 1,800-1,775. A decisive break below Rs 1,775 could gain selling pressure towards the stock's 52-week low area of around Rs 1,745.

On the upside, Rs 1,855-1,875 is the first resistance zone, followed by Rs 1,900-1,930. A sustained move above Rs 1,900 would improve the short-term setup and could signal that the recent slide was only a correction, Gour stated.

Momentum indicators additionally stay wary. The Relative Resilience Index (RSI) is around the mid-40s, indicating weakening momentum but not an oversold condition. The Moving Average Convergence Divergence (MACD) stays below the zero line, although the histogram and lines show early signs of stabilisation.

"The stock does not yet show a firm momentum-based reversal signal," Gour stated.

For existing holders, the chart at present supports a hold-with-risk-control approach, provided the Rs 1,775-1,800 zone holds, he stated. For a fresh entry, Gour stated it may be preferable to wait for either a firm reversal from this backing zone or a sustained move back above Rs 1,900.

A break below Rs 1,775 would materially weaken the setup, he stated.

Vishnu Kant Upadhyay, AVP, Research, Master Capital Services, stated Bharti Airtel keeps hold above its ascending trendline despite the recent pullback, with the Rs 1,800-1,830 zone acting as a buying area.

"That stated, the stock has failed to reclaim its 100-day and 200-day EMAs near Rs 1,900, from where the recent slide emerged," Upadhyay stated.

The stock is now close to its trendline backing, which has provided buying opportunities in the past, he stated.

"The technical structure supports holding the stock, while the current correction can be used to accumulate near backing. Fresh buying should be considered cautiously," Upadhyay stated.