Bharti Airtel Gains 0.12%: 4 Key Factors Driving the Week’s Mixed Momentum

29 December 2025: Surge in Derivatives Open Interest Amid Price Softness

Bharti Airtel’s week began with a notable 11.21% increase in open interest in its derivatives segment, rising to 1,72,148 contracts from 1,54,795 the previous day. This surge accompanied a 1.14% decline in the stock price to Rs.2,081.65, reflecting mixed market sentiment. The futures market value stood at approximately ₹3,37,228 lakhs, while options contracts exhibited a substantial notional value of ₹68,220 crores, highlighting active participation in the derivatives space.

Despite the price dip, the stock remained above its 50-day, 100-day, and 200-day moving averages, signalling a longer-term uptrend. However, it traded below the short-term 5-day and 20-day averages, indicating recent selling pressure. Delivery volumes also declined sharply, suggesting that the derivatives activity was driven more by speculative positioning than outright accumulation.

30 December 2025: Mojo Grade Downgrade to Hold Amid Mixed Technical and Valuation Signals

On 30 December, Bharti Airtel’s Mojo Grade was downgraded from Buy to Hold by MarketsMOJO, reflecting a reassessment of its technical and valuation outlook. The stock closed at Rs.2,099.85, up 0.87% from the previous day, but the downgrade highlighted caution due to mixed technical indicators and valuation concerns.

Technical trends showed a shift from bullish to mildly bullish, with weekly MACD mildly bearish and monthly MACD remaining bullish. The Relative Strength Index (RSI) was neutral weekly but bearish monthly, while Bollinger Bands suggested mild bullishness. Valuation metrics indicated the stock was expensive on an enterprise value to capital employed basis (4.5x) but trading at a discount relative to peers. The PEG ratio was low at 0.3, reflecting strong profit growth outpacing price gains.

Financially, Bharti Airtel demonstrated strong growth with net sales rising at an annualised 15.68% and operating profit margins expanding to 37.60%. The company’s market capitalisation stood at ₹11,86,979 crore, dominating the telecom sector. However, promoter stake reduction and high debt levels introduced cautionary signals.

31 December 2025 to 1 January 2026: Technical Momentum Shifts to Mildly Bullish

During the final trading days of 2025 and the first day of 2026, Bharti Airtel’s technical momentum evolved from a cautious stance to mildly bullish. The stock closed at Rs.2,105.70 on 31 December (+0.28%) and Rs.2,110.10 on 1 January (+0.21%), reflecting steady gains near the upper end of its 52-week range.

Technical indicators presented a nuanced picture: daily moving averages remained mildly bullish, weekly MACD was mildly bearish, and monthly MACD bullish. The Relative Strength Index (RSI) was neutral weekly but bearish monthly, while Bollinger Bands suggested contained volatility with mild bullishness. On-Balance Volume (OBV) showed no clear trend, indicating subdued volume confirmation. These mixed signals suggested a consolidation phase with potential for moderate upside.

Bharti Airtel’s long-term returns continued to impress, with a 5-year gain of 300.12% and a 10-year return of 578.01%, far outpacing the Sensex benchmarks. This resilience amid technical caution underscored the company’s strong fundamentals and market position.

2 January 2026: Technical Momentum Upgraded to Bullish as Week Closes

On the final trading day of the week, Bharti Airtel’s technical momentum shifted decisively to bullish. The stock closed at Rs.2,108.20, down marginally by 0.09% intraday but up 0.12% for the week overall. The daily moving averages remained firmly bullish, supported by positive MACD readings on weekly and monthly charts. Bollinger Bands indicated strong buying pressure with prices near the upper band.

Despite neutral RSI readings and mixed KST oscillator signals, the overall technical upgrade reflected growing confidence in the stock’s near-term price direction. On-Balance Volume was mildly bullish weekly, supporting the price gains, though monthly volume trends remained inconclusive.

Bharti Airtel’s long-term returns continued to outshine the Sensex, with a 1-year return of 32.21% versus the Sensex’s 8.51%, and a 3-year return of 161.58% compared to 40.02%. The company’s market capitalisation and sector leadership remain strong, underpinning its resilience amid mixed market conditions.

Key Takeaways

Positive Signals: Bharti Airtel’s long-term returns remain exceptional, with 10-year gains of over 570%, significantly outperforming the Sensex. The recent technical upgrade to bullish momentum, supported by MACD and Bollinger Bands, indicates potential for further price appreciation. The company’s strong financial metrics, including expanding profit margins and improving debt ratios, reinforce its sector leadership.

Cautionary Notes: The downgrade to a Hold rating reflects mixed technical and valuation signals, with some short-term indicators showing weakening momentum. Promoter stake reduction and high debt levels introduce risks amid volatile market conditions. Delivery volumes have declined, suggesting less fundamental accumulation despite active derivatives positioning. Investors should monitor volume trends and technical indicators closely for signs of sustained momentum or consolidation.

Conclusion

Bharti Airtel Ltd’s week was characterised by a delicate balance between strong long-term fundamentals and mixed short-term technical signals. The stock’s modest 0.12% weekly gain contrasted with the Sensex’s 1.35% rise, reflecting cautious investor sentiment amid evolving market dynamics. The surge in derivatives open interest early in the week signalled active repositioning, while the Mojo Grade downgrade to Hold underscored the need for prudence given valuation and momentum concerns.

However, the technical momentum’s shift to bullish by week’s end, supported by positive MACD and moving averages, suggests that Bharti Airtel remains well-positioned for potential near-term gains. Its dominant market capitalisation, robust financial performance, and superior long-term returns continue to make it a key player in the telecom sector. Investors should weigh these factors carefully, balancing optimism about the stock’s resilience with awareness of short-term volatility and sector challenges as 2026 unfolds.

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