The performance of telecom stocks will remain subdued in the coming week as the industry is faced with regulatory obstacles amid a dearth of positive trigger in the near term. Lacklustre performance by industry leader Bharti Airtel in its Apr-Jun result and management commentary on the company's expectations of margin dilution in the coming quarters will keep the stock under pressure in the medium term.
Even though fundamentals remain weak for Bharti Airtel, the stock seems to be in the oversold territory on the technical chart and may see some value buying in the coming sessions, which may drive the stock up to near 265 rupees. Trend in Idea Cellular is expected to be sideways, with resistance at 78 rupees and support at 70 rupees.
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