The Hindu Business Line : Tata Communications (Rs 438.1): Sell

We recommend a sell in the stock of Tata Communications from a short-term perspective. It is apparent from the charts of the stock that following a medium-term uptrend from Rs 382 in February it changed direction. Since then, it has been on an intermediate-term downtrend. We notice formation of descending triangle pattern spanning from May, with support at Rs 450. In early October the stock breached its moving average compression (21, 50 and 200-day) and is trading well below these averages. On October 28, the stock declined 3 per cent penetrating significant support at Rs 450. The daily relative strength index (RSI) has entered in the bearish zone and weekly RSI is on the brink of entering this zone. Moreover, daily and weekly moving average convergence and divergence (MACD) are featuring in the negative territory. Our short-term forecast is bearish on the stock. We expect it’s down trend to prolong until it hits our price target of Rs 394 in the forthcoming sessions Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 460.

Yoganand D.

More Stories on : Stocks | Recommendation | Tata Communications Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rains along TN coast to intensify

Class Action suit provision in Cos Bill to compensate investors

US panel favours 100% FDI in telecom sector

ACC, Ambuja Cement net profits rise on lower input cost

Infrastructure sector growth slips to 4% in September

RNRL says Oil Ministry colluding with RIL to prevent gas sale at $2.34/unit

Tata Communications (Rs 438.1): Sell

Day Trading Guide

HPCL skids on oil bond delay

Metal counters lose shine on LME volatility

Banks told to lend more to farm, small sectors

Shankar Sharma’s plea against ban dismissed

Higher income pushes Bank of Baroda net up 60%

RBI pushing for acquisition of weak, sick urban co-ops