Bharti Airtel breaks out of consolidation pattern; heres why!

The stock of Bharti Airtel is seen buzzing on the bourses as it gained over 2 per cent. Most importantly, the stock has witnessed a breakout of stage 1c 26-week long consolidation pattern and with this, it marked a fresh high.   

The company has announced the closure of its agreement with Reliance Jio Infocomm (Jio) to transfer the ‘right to use’ of Airtel’s 800 MHz spectrum in three circles to Jio.  

Airtel has received Rs 1,004.8 crore (net of tax) from Jio for the proposed transfer. In addition, Jio will assume future liabilities of Rs 469.3 crore relating to the spectrum. 

The stock has gained 4.6 per cent on a WTD basis while on MTD basis, it logged a double-digit gain of a little over 13 per cent.   

Recently, the stock was seen outperforming Nifty 50 index by a wide margin. August Futures on Bharti Airtel has seen an addition of 2.35 per cent in the open interest. The highest open interest on options’ front call side for the stock stands at 600 strike price, followed by 620 strike price. While on the put side, the highest open interest stands at 600 strike price. The 620 call strike is seen unwinding as the open interest had shed 4.41 lakh shares. Meanwhile, the 640 call strike has seen the addition of 12.14 lakh shares in the open interest.