Gladiator Stocks - Tata Communication: Base formation above 50 day's EMA sets stage to challenge life-time highs

Technical View

- The telecom sector has been regaining traction after the past three month's breather. Within the sector, we remain constructive on Tata Communication as it resolved out of double bottom formation, indicating conclusion of secondary corrective phase. Hence, it offers a fresh entry opportunity with a favourable risk reward

- Key point to highlight is that the stock has entirely retraced past five weeks decline (Rs. 1080-1040) in just two weeks. Faster pace of retracement indicates robust price structure that augurs well for acceleration of upward momentum

Fundamental View

- Tata Communications is the leading global provider of a 'new world of communications'. With a leadership position in emerging markets, and an infrastructure that spans the globe, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global network to deliver managed solutions to multinational companies and service providers

- Data growth segment revenues for Q4 came in at Rs. 774 crore, down 9.6% YoY, 3.9% QoQ. The company attributed the decline to slower deal conversion in wake of business uncertainties due to Covid-19 and tapering down of UCC traffic after the bump-up last year. However, the company indicated that demand outlook is robust in the medium/long term and maintained the long term trend of double digit growth outlook. Another positive change is that company is looking to increase business disclosures and simplify the segmental definitions

For details, click on the link below: Link to the report

Shares of TATA COMMUNICATIONS LTD. was last trading in BSE at Rs.1222.9 as compared to the previous close of Rs. 1224.25. The total number of shares traded during the day was 71291 in over 5855 trades.

The stock hit an intraday high of Rs. 1254 and intraday low of 1215. The net turnover during the day was Rs. 88290629.

Source : Equity Bulls

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