Today what Reliance Jio did with the Tariff plan that was literally brutal in terms of other telecom providers?
So if you are having Holding in Telecom companies such as Bharti Airtel, Idea and other Internet Service Providers –You should simply skip and sell off all your holdings since there is not much to be expected fundamentally.
On the technically front yes with the kind of sell off happened today you could expect some of the short covering starting tomorrow or around 300 levels for Bharti Airtel.
The reason these companies don’t look good because they eventually have to shrink their margins and to be in business they have to introduce an unexpected plans to cope up with the JIO offers.
Which will give negative impact to their growth and margins.
Therefore, it would be advised to stay away from telecom and Internet service provider companies if you are thinking of investment option. For Intraday traders the current time is a Goldmine for trading in telecom companies as there will be lot of volatility.