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Please share your analysis on Tata Communications. I’m holding May futures – Prammit Kedia
Tata Communications (₹1,755): The stock, after hitting a record high of ₹2,084.65 early this month, saw a sharp decline in price. So far this month, Tata Communications’ share price has dropped nearly 13 per cent.
The scrip is now below the 200-day moving average and has invalidated a rising trendline support. The nearest notable base from the current level is at ₹1,650.
Below this, there is another long-term trendline support, which the stock could meet at ₹1,600. Since the support levels are a bit away from the current level, the probability of the price falling further is high.
That said, there might be a corrective rally from here, possibly to ₹1,800. Only a decisive breakout of ₹1,850 will turn the outlook positive for the stock. Until then, the bias will be bearish.
We suggest exiting the futures long when the price rises to ₹1,850. Until then, place a stop-loss at ₹1,715 and hold.
Consider fresh long positions only when the stock falls to the ₹1,600-1,650 price band or if it surpasses the barrier at ₹1,850.
Send your queries to derivatives@thehindu.co.in
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