Despite weakness in the broader markets, one small-cap Tata stock seems to have started its up move. The company is Tata Teleservices Ltd (NS:TTML) which is a telecom services provider with a market capitalization of INR 19,510 crores. When the NIFTY Smallcap 100 index is down 0.26% 9,528 by 2:31 PM IST, TTML shares are locked in at the upper circuit limit of 5%, at INR 104.75.
As this is a small-cap company, the stock is extremely volatile, therefore rally from here could be sharp, which we have seen in the past as well. One of the best things about this stock is that once it starts its move, it almost never stops until it delivers a stellar rally. Although, the circuit filter has been revised to 5% which was 20% in August 2022, therefore the up trend might take a bit of time.
Image Description: Daily chart of TTML
Image Source: Investing.com
Looking at the daily chart, almost 1.5-month back, the stock staged a massive rally and surged from INR 88.4 to INR 149 in a mere 4 sessions. This is the kind of potential this stock holds. After the rally, selling pressure from the higher levels abated the rally and soon it turned its direction to the south and started its journey of a gradual but consistent fall.
Today is the first time, that the stock is seemingly looking all geared up to start another rally from here. Amid today’s gain, the stock also surged past its falling trendline resistance which had been keeping the stock from rising since it topped out in early September 2022. Although the volume for the day is not high, one also has to consider that there are over 6.5 lakh shares pending at the highest bid and waiting to be executed. As there are no sellers present, this demand couldn’t materialize into the traded volume for the day.
If the rally starts from here, the stock could easily soar to a high of around INR 128, which depicts an upside potential of around 22% from the CMP of INR 104.75. The stock could surge in a one-way rally to the nearest level of INR 116 in a jiffy. On the downside, if the stock breaks its today’s low of INR 99, then the rally could be deemed to be a failure.