Tata Communication Technical Analysis #28: Buy | Target Rs 625 | Arijit Banerjee


Buy Range520 – 540
Target600 – 625
Duration20 – 25 Trading Sessions
Potential Return^12 – 17%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
535.15BUY520 – 540600 – 62550550 – 60 Trading Sessions12 – 17%

# CMP on Feb 22, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 565.
^ The returns are calculated based on CMP#


Headquartered in Mumbai and Singapore, Tata Communications is a truly Global company served across 38 countries, provide voice solutions, VPN, CDN, data transmission and broadband services. In Q3FY19 the company’s revenue had marginally improved 5% to 4269 Crore. There is an exceptional rise in net profit, a whopping 10,402% growth to 173 Crore in the bottom line for the same period.

Stock Data
SectorNifty 500
52W High671
52W Low435.7
Face Value10
Relative Performance_TATA Communications vs Nifty Infra Index


  • The weekly chart indicates that after 2 years of downside movement, the stock has given the breakout of the downtrend line indicates positive sign.
  • Weekly closing is above 13 Weeks & 26 Weeks Moving Average.
  • Weekly ROC (20) remains in rising trajectory above 0, signalling continuance of the upward momentum.
Weekly Tata Communication Chart


  • The share price recently witnessed Three White Soldiers, rallying from ₹ 496.
  • Since last six days, the stock had been moving in the higher top and higher bottom formation indicating positive bias.
  • Daily closing above upper Bollinger Band showing further bullishness.
  • The Daily RSI (14) crossed above 50, now came near 70 level which is a bullish zone.
Daily Tata Communication Chart
Daily Tata Communication Chart


1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.


The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).


The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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