The Indian markets are trading with massive strength, all thanks to the recovery in the global markets after a severe fall amid the US Fed chairman Jerome Powell’s hawkish stance on interest rate policy. The Nifty 50 is currently trading 1.28% up at 17,534 by 11:07 AM IST with all sectoral indices trading in the green zone.
With a sea of green numbers across the board, there is no dearth of stocks that are making a killing for investors in today’s sessions. One such stock is from the Tata stable - Tata Teleservices Ltd (NS:TTML) which is a midcap cellular telecommunication services provider having a market capitalization of INR 17,672 crores. The stock is roughly 3.86 times more volatile than the Nifty 50 index.
In FY22, the company noted a slight YoY jump of 4.02% in revenue to INR 1,110.72 crores, but it reduced its net loss by over 39.15% to INR 1,215 crores in the same period. Almost 75.3% of the holdings are with the promotors, while a 2.34% stake is with the FIIs, which was a mere 0.01% a year ago.
Image Description: Daily chart of TTML with volume bars at the bottom
Image Source: Investing.com
The share price of Tata Teleservices (TTML) soared 20% to the upper limit of INR 108.45 in the early session as investors are looking to accumulate the stock from lower levels. It has already tanked around 69% from the 52-week high of INR 290.15 to the year’s low of INR INR 88.2, marked yesterday.
This lower level was around the same price where the stock had taken support in March 2022, after it fell continuously from the highs. Hence, support from here was more or less expected. The sharp surge of 20% has led the stock to surge past its falling trendline resistance on the daily chart, which is an early indication of a trend reversal towards the upside. Although the stock is trading above the trendline, closing above it is required after which the stock could be heading towards the nearest resistance of around INR 130 in the immediate future.
As there is a 20% up move in today’s session, a retracement from the higher level in the next few days could easily come, which could be an opportunity for left-out investors. As long as the stock is trading above its yesterday’s low of INR 88.2, a further leg of a downtrend is not expected.