While the broader markets were witnessing a bit of selling pressure from the upper levels, one stock that hit a 5% upper circuit with ease is Tata Teleservices (Maharashtra) Limited (NS:TTML). It is a mid-cap telecommunications company from the Tata stable, having a market capitalization of INR 19,031 crores. It is quite a volatile stock with 3.85x more volatility than the Nifty 50 index.
Although the company is reeling under losses for the last few years, but it is continually reducing losses, from INR 3,714.11 crores in FY20 to INR 1,996.69 crores in FY21 to INR 1,215 cores in FY22. The shareholding pattern of the company is worth a look. FIIs are showing increasing confidence in the company, ramping up their stake from a mere 0.01% in June 2021 to 2.32% in September 2022. Along with it, mutual funds, which did not hold any stake in the company a year ago, have now bought 0.05% of the company.
Image Description: Daily chart of TTML
Image Source: Investing.com
Today, the share price of TTML surged to INR 102.2 which is a 5% upper circuit limit for the stock. On its way up, the stock also surged past its falling trendline resistance without any major trouble from the bears. By the closing, it managed to stay above the trendline which has confirmed the beginning of an uptrend from here.
The volume for the day was recorded at 987K shares which is not very high, and a much higher volume would have been the icing on the cake. But as I always say, I generally don’t consider volume figures when the stock is locked in at a circuit limit because a lot of pending orders do not materialize into actual traded volume.
Nonetheless, the stock could rally to INR 108 very quickly from the CMP as the momentum has just started. Above this resistance, the next hurdle faced by the bulls would be somewhere around INR 114 which is from where the current trendline has started. If the stock falls back below yesterday’s low of INR 97, then the bullish bias in the stock would be negated. As this is a very volatile stock, traders should take care of their position size should they choose to try to participate in the rally.