Analysis: TATACOMM (TCL)

Today’s pick is TATACOMM TATACOMM 425.45 3.45 (0.82%). The stock has been range-bound between Rs. 220 and Rs. 260 for most part of the year. There is a secondary support at Rs. 200 levels. The stock is again headed towards the lower end of the range. In the last three months, the stock has moved -4.1% vs. a flat Nifty.

TATACOMM technical analysis chart

Oscillator RSI and CMO are in no man’s land. The stock is trading in the middle of Bollinger band not giving any short-term directional bias. Short-term technicals saw a 9×18 bullish cross-over.

The MACD line and signal line are moving very close to each other without giving any directional bias. Also, Long-term and short-term GMMA lines can be seen contracting, unable to give any direction to the stock.

TATACOMM correlation chart

TATACOMM’s average correlation with the Nifty is -0.11 which is negative. The scrip will not be replicating movement of Nifty. NIFTYBEES 860.50 7.86 (0.92%)

TATACOMM volatility chart

TATACOMM has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility is currently in the lower end of the range.

TATACOMM (TCL: NS) Analysts coverage

Analysts continue to have an underperform rating for the stock.

Given these technicals, we suggest a short-term hold. For the long-term a call can be taken once this Rs. 220 – Rs. 260 range is broken in either direction. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.

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Get in touch with Shyam for advice on mutual funds. You can either WhatsApp him or call him at 080-2665-0232. He is an AMFI registered IFA who can advice you on IDBI, Mirae, HDFC, ICICI Pru, UTI, Sundaram, Reliance, Religare, Peerless, Tata and Birla Sun Life funds.

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