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You are here : IndiaNotes >> Research & Analysis >> Companies >> Tata Communications Ltd. >> Research

Technical Tip: Way2wealth recommend an upside price target on Tata Communications

Way2wealth | 18 Apr, 2017  | Follow Author | Add to my Favourites 
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  • Looking at the weekly chart, stock has seen tremendous rally from the bottom of around 322 (March 04, 2016) and rallied till 784 (March 17, 2017).
  • Subsequently, the bullish momentum got cooled off and stock gradually corrected till 700.The said level coincides with the multiples supports. First, the daily 89-EMA, 38.2% retracement of its entire move from the bottom of 595.25 (December 30, 2016) to the top of 784(March 17, 2017).
  • If we meticulously look at the weekly chart, we are seeing a formation of ‘Bearish Divergence’ which was followed by ‘Positive Reversal’. The said pattern occurred near 60 level of RSI.
  • The previous weekly swing high of 688 formed on October 30, 2016; has turned its role post the breakout and should act as a strong support (change of polarity rule).
  • On a daily chart, RSI (14) came near 40 levels and showed sign of reversal.
  • Considering the above technical patterns, we are expecting stock to resume its primary trend hence we advise traders to buy this stock at current level of 714 with an upside price target of 850. Strict stop loss should be placed at 659 below which our bullish view will be negated.



Investment Strategy:

  • Buy TATACOMM at 714, Target 850 & SL 659.
  • Return to risk ratio: 1:2.47.

 


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About Way2wealth

Way2Wealth today has established itself as one of India’s ‘Premier Investments Consultancy Firms’, known for making investing simpler, more understandable and profitable for the investors. They offer a wide range of products & services viz: Equity, Derivatives, Currency Futures, Commodities Trading, IPO's, Mutual Funds, Portfolio Management Services & Depository Services.

 

For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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