A high risk equity trading opportunity in Bharti Airtel on May 05, 2011

Bharti Airtel will announce their quarterly results (including Africa numbers) on May 05, 2011. There will be high volatility in the stock on May 5 and will provide several trading opportunities.

The stock has been performing very well since February 01 except for last two days. It closed at Rs.385.15 on April 27 which was the highest closing since October 05, 2009. As the stock is near to its peak of last two years, the chances of it falling on the result day are very high; however, I am going to trade contrary to this and hence it will be a high risk trade.

I believe that from Bharti Airtel’s previous quarterly results the trend of the stock falling on the results day has changed and will continue for next few results. I will buy the shares in the morning if they are cheaper than the earlier day, anything around Rs.360 will be a nice price to make the maximum intraday profit. Yes, if it goes the other way around, should square off the position for minimum loss.

Other updates:

Tata Power: Technically Tata Power seems weak for next couple of weeks. The stock closed today at Rs.1296.35, but it can fall to Rs.1220.

Tata Steel: The stock is near to the support of Rs.582, if it closes below that then it can fall to Rs.510 in a couple of months.