Today's Pick

Today’s Pick: Buy Tata Communications

Akhil Nallamuthu BL Research Bureau | Updated on October 20, 2020

The stock of Tata Communications Lt has broken out of the resistance of ₹935, following which it registered a fresh lifetime high of ₹965.3 yesterday. The breakout hints at fresh build-up of bullish momentum and, hence, the outlook is positive for the stock.

The scrip, which registered a sharp fall in March, hadmarked a low of ₹200 in mid-March. It then entered a consolidation phase where it was largely trading between ₹215 and ₹260. Following this, the stock broke out of the range and established a strong uptrend. Consequently, the stock advanced by over 3.5 times and touched ₹930 levels in August. Then, the scrip started to move in a sideways trend, largely consolidating between ₹780 and ₹935.

On Tuesday, the stock breached the resistance at ₹935 and registered a fresh lifetime high of ₹965.3, opening the door for further strengthening. Supporting the bullish outlook, the relative strength index and the moving average convergence divergence indicators show fresh upward momentum. So, traders can buy the stock with a stop-loss at ₹925 and look for a near-term target of ₹1,000.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading

Published on October 21, 2020

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