‘TELE’calling…. Telecom industry’s recent knee jerk reaction…big concern or BIG opportunity?

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Tuesday, October 6 saw a steep fall in the prices of Indian telecom scrips with Airtel, Rcom and Idea falling in double digit percentage. But the current downturn also opens up an opportunity to add these outperforming stocks in your portfolio.
The reason for the decline is the proposed per second call plan for the service providers that the investment pandits assume will squeeze the profitability. But technically speaking these scrips face a strong support level which is very clsoe to the current levels. For instance Rcom has a strong support at 250, idea promises to be above 55 and Bharti numbers shows it will be very hard to push it below 340.
These support levels are calculated on the basis of historical performances of these scrips. To add to it, Bharti-Airtel CMD Sunil Mittal had already stated the the company is on for an inorganic growth(merger/acquisition) that promises a good future. So pick up your favorite telecom stocks at further dips to build your portfolio.