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Informist, Friday, Sept. 4, 2026

 

MUMBAI – Technical charts show positive momentum building in the BSE Telecommunication index, with an upside breakout possible in the near term, analysts said. However, they remain concerned about persistent selling of telecommunication stocks by foreign portfolio investors over the last few months.

 

The BSE Telecommunication Index ended at 3675.40 points Friday, up 1.4% from Thursday. Tejas Networks and STL Networks were the top gainers among the index constituents Friday, ending 8.1% and 5.0% higher, respectively. However, heavyweight Bharti Airtel ended 1.2% lower and was among the worst hit in the index. The key sectoral index ended 0.8% lower on week. The immediate resistance for the index is seen at 3780, followed by the next upside projection near 4080. On the downside, 3550 is the first important support level, with 3360 providing the next cushion, an analyst at a domestic brokerage said.

 

The index is consolidating below the key resistance at 3790, while momentum remains positive, with volumes indicating healthy participation, he said, adding that the broader trend remains constructive. The index is holding above support at 3550 and the 50-day moving average at around 3600, while the 200-day moving average remains much lower, at around 3250, confirming the stronger medium-term trend. "RSI (relative strength index) is around 63, showing positive momentum without entering the overbought zone. There is no clear bearish divergence visible currently," the analyst said.

 

Meanwhile, the telecommunication sector saw outflows of INR 49.83 billion from foreign portfolio investors in August, according to SBI Securities. The selling trend has been persistent since January, with foreign portfolio investors offloading INR 295.13 billion from the sector so far in 2026. "Continuous, heavy investments required for pan-India 5G infrastructure and spectrum renewals are heavily dragging down near-term free cash flows, while actual 5G revenue generation (ARPU growth) is scaling much slower than projected," it said.

 

SBI Securities said unresolved legacy issues, notably ongoing disputes over adjusted gross revenue dues and the statutory payout timeline, continue to create an overhang of sudden legal and financial liabilities for telecom operators. Because it is a domestic-revenue-heavy sector with high dollar-denominated import costs, companies' net profit margins are impacted compared to export-driven sectors such as information technology and pharmaceuticals.

 

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The following are the resistance and support levels for key telecom stocks for next week as per calculations based on their prices on the National Stock Exchange:

 

Company	Price	Week-on-week  change in %	Resistance	Support
Bharti Airtel	1840.00	(-)2.30	1880.90	1819.50
Mahanagar Telephone Nigam	26.55	(-)2.60	27.20	26.20
Reliance Industries	1322.00	2.70	1348.60	1290.80
Tata Communications	1756.10	3.60	1805.10	1671.90
Tata Teleservices Maharashtra	37.74	(-)2.80	38.70	37.10
Vodafone Idea	15.02	2.30	15.50	14.20
Index	Levels
Nifty 50	23897.70	(-)1.20	24043.00	23823.20
S&P BSE Sensex	76515.43	(-)1.00	77005.70	76270.30

End

 

Reported by Ashutosh Pati

Edited by Saji George Titus

 

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