We recommend a buy in Tata Communications from a short-term perspective. It is clearly evident from the charts of this company that it had been on a medium-term uptrend between August 2007 and early January 2008 (from a low of Rs 360 to a 52-week high of Rs 783). However, the stock reversed direction from this peak and has been on a downtrend since then. This downtrend got arrested around Rs 450 level, recently. Supported by positive divergence in the daily momentum indica tor, the stock is currently in a short-term up-trend since the trough at Rs 450. The daily momentum indicator has entered the neutral region from the bearish zone and the weekly momentum indicator has bounced up from 40 levels. We notice a crossover in the daily moving average convergence divergence, which indicates establishment of bullishness. We are bullish on the stock in the short-term. We expect it to continue further to our target price of Rs 595 in the short-term. Investors with a short-term perspective can buy the stock with stop loss at Rs 445.
Via Businessline
Via Businessline
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