April 27, 2021, Brazil. In this photo illustration the Tata Consultancy Services Limited (TCS) logo seen displayed on a smartphone screen
Throughout the month, the Tata Teleservices share price has traded with strong momentum and volatility. At one point, the company was up by over 30 per cent for the month, mostly due to trading activity that happened on the first two days of the month.
However, since then, Tata Teleservices’ share price has been in free fall, which has seen it drop by 30 per cent from September 2, price highs to date. The drop has been in tandem with other market factors, such as the inflation rate in India and the falling value of the Indian Rupee against the dollar. These factors have made it harder for the company to continue making gains in the markets, resulting in the current price drop.
In today’s trading session, however, Tata Teleservices’ share price is up by 2 per cent. The prices are also looking likely to continue going up throughout the session, and hence there is a high likelihood of prices closing the session higher.
Despite today’s push to the upside, my Tata Teleservices price prediction expects the long-term bearish trend to continue. As listed above, the current inflation rates and the falling value of the Indian Rupee will be major factors in the coming weeks.
The impact of these factors has resulted in high operating costs for the company, which has affected its bottom line. Their clients have also had to cut spending on Tata Teleservices, which is also likely contributing to the current price drop.
Therefore, I expect the price of Tata Teleservices to fall below the 100 price level and possibly hit the 90.5 demand level in the coming weeks. My bearish analysis is also supported by technical indicators such as the Williams Alligator, which, based on the daily chart below, is giving signals of a continuation of the long-term bearish trend. A trade above the 115 price level will invalidate my analysis.
This post was last modified on Sep 28, 2022, 09:51 BST 09:51