Signalling increasing interest in TTML, the stock’s delivery volume jumped nearly 150 per cent last week.
Technical charts indicate the stock is trading higher than 20-day and 50-day moving averages but lower than 200-day moving averages.
“The stock has given a downwards consolidation breakout on the weekly chart registering a bullish reversal. On the higher end, Rs 141 may act as a crucial resistance. The further rally may require a decisive move above Rs 142. Whereas on the lower end, support is there at Rs 124,” Rupak De, Senior Technical Analyst at
Om Mehra of Choice Broking recommends a cautious positive approach on the stock. “Most importantly, investors should not be looking at equities for a short-term perspective as the outlook should necessarily be much longer,” he said.
The company reported a net loss of Rs 295.1 cr for the 4th consecutive quarter in Q4 of FY22. In the previous fiscal year, its net loss was at Rs 1,215 crore and therefore fundamental analysts do not find reasons to justify the rally.
“This is a company which is actually not having any meaningful business at this point of time and because of the major holding by Tata Sons the floating stock in the market is less. Now we are hearing a lot of buzz around the 5G rollout and companies which have some sort of potential to benefit from it,” Motilal Oswal’s equity strategist Hemang Jani said.
Pointing out that a large part of the 5G related capex would be done internally by telcos like
Jio and , he said fibre optic companies like Sterlite Technology could benefit. “But for Tata Teleservices, I do not see any specific reason why there should be so much rerating,” Jani said.
The stock ended 1.6 per cent lower at Rs 132.60 on Monday.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)