Tata Teleservices Share Price Drops As NIFTY 50 Makes YTD Lows

Summary:
• Tata Teleservices share price (NSE: TTML) is in a downward spiral due to a heavy standalone net loss in its previous quarter.

Tata Teleservices share price (NSE: TTML) had another red day as the Nifty 50 index fell by 111 points today. This also marked the fresh yearly lows for the benchmark Indian stock index. BSE Sensex also showed a negative price action and dropped to its new 2023 lows. Consequently, major Indian equities like Tata Tele share price also tumbled.

Both Nifty 50 and BSE Sensex have lost 6.34% & 5.53% since the start of 2023. The major reason for this downtrend is the lowered prices of Adani shares due to Hindenburg Research’s report against the Indian tycoon. This has resulted in a major decrease in liquidity in the Indian share market, which was already struggling.

What Will Happen To Tata Teleservices Share?

On Tuesday, Tata Teleservices share price opened at ₹59.3 and went to ₹60.8 before sliding down once again. The shares closed the day at ₹59.1 after losing 0.51% during today’s trading session. This translates into a YTD loss of 37% in Tata Tele share price. The price also fell below the key level of ₹64.

A major reason for this price decrease is the recently reported loss in the last quarter. In its latest quarterly report, Tata Teleservices reported a standalone net loss of 306 crore Indian Rupees. This was a low loss than during the same quarter a year before. Despite a massive standalone loss, the company’s sales still increased by 15% on a YoY basis.

Tata Teleservices Share Price Analysis – 1D Chart

It is quite evident from the following NSE: TTML chart that the price has been in a downtrend since April 2022. Even though the price has retested the downward trendline many times, it has failed to break out every time. As a result, Tata Tele shares are trading 80% below their all-time high of ₹290.

As long as the price remains below the 200-day moving average, our Tata Teleservices share price forecast will stay bearish. The 200-day moving average currently lies a ₹100. Before this level, a breakout from the downward trendline might also generate a strong bullish reversal signal. However, such a move seems to be quite unlikely in near future. If the price breaks ₹52 level, then the next support lies at ₹46.