markettrend766
15-10-2008, 06:20 AM
We recommend a buy in Tata Communications from a short-term horizon. It is apparent from the charts of Tata Communications that it has been on an intermediate-term uptrend from its 52-week low of Rs 332 recorded in early July. The stock’s intermediate-term uptrend began from a significant long-term support band of Rs 330-350 and it has been shaping higher peaks and higher bottoms since then.
On October 14, the stock jumped up almost 12 per cent penetrating the 21-, 50-day moving averages and also key resistance level of Rs 480. With this jump, the daily relative strength index rose and is on the brink of entering into the bullish zone. Moreover, the moving average convergence and divergence is featuring in the positive territory and indicates buy. The intermediate-term uptrend of the stock is intact. Taking into consideration the above positive facts, we are bullish on the counter from a short-term perspective.
We expect the stock to move up until it hits our price target of Rs 545 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 468.
On October 14, the stock jumped up almost 12 per cent penetrating the 21-, 50-day moving averages and also key resistance level of Rs 480. With this jump, the daily relative strength index rose and is on the brink of entering into the bullish zone. Moreover, the moving average convergence and divergence is featuring in the positive territory and indicates buy. The intermediate-term uptrend of the stock is intact. Taking into consideration the above positive facts, we are bullish on the counter from a short-term perspective.
We expect the stock to move up until it hits our price target of Rs 545 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 468.