Bharti could collapse to 225-200 if it breaks below 270: Devang Visaria

Devang Visaria, Chief Strategist, Devangvisaria.com in conversation with ET NOW said that if Bharti stock breaks below 270 and sustains below that, it could collapse all the way to 225-200 levels.

Bharti stock closed down 9% yesterday and broke 2-3 critical support levels. Is there a fair amount of short build-up happening with 36 lakh shares being added in open interest?

Bharti stock is looking very weak. If it hits a fresh 52-week lows, then the stock is likely to witness significant downsides. On the weekly charts, there is a very interesting pattern developing for bearish traders. We call it a head and shoulders pattern. Spread across the year, the charts are indicating the formation of a bearish head and shoulder patterns. If the stock breaks below 270 and sustains below that, it could collapse all the way to 225-200 levels. On the upside, 300-315 are very strong resistance levels and unless the stock breaks about 315, there is not going to be much of a trend reversal in the stock.