TATA COMMUNICATIONS - TRADING AT MAJOR SUPPORT ZONE

Feb 27

Symbol - TATACOMM

CMP - 1388

Tata Communications Ltd. has shown weakness over the past few months, with the overall technical structure indicating a bearish outlook. However, the stock has recently reached a major demand zone, which lies between the 1380-1350 range, a level that has held significant support in previous price actions since 2021. This zone could act as a strong demand area, potentially offering a good trading opportunity at current prices.

The stock has been under selling pressure in the short term, but as it approaches this demand zone, the probability of a reversal or at least a short-term bounce increases. The technical indicators suggest that the stock is at a crucial level where the demand could pick up, leading to a possible upward movement from current levels. Although the broader trend has been bearish, the price action near this support level creates an attractive risk-reward setup.

Given the recent price action, I am taking long positions in TATACOMM Futures at 1388. I will look to add more positions if the price reaches 1360-1350 range. My SL is set at 1325 to manage risk, ensuring protection in case the price fails to hold the demand zone and continues lower.

The target I am expecting is 1520, which represents more than a 10% upside from current levels. This target aligns with previous resistance areas and the potential for a bullish move once the stock stabilizes at the demand zone.





Disclaimer: The information provided here should not be construed as a buy or sell recommendation. It reflects my personal analysis and my trading position. Please consider this trading idea for educational purposes only. Thank you!

Feb 28

Trade active

CMP 1351

Adding more long position
Avg buy price now is 1369

Mar 4

Trade closed: stop reached

SL reached, Trade closed.

Mar 16

Note

Although I exited my position with SL but my target of 1520 was reached, which was more than 10% upside in Futures from my entry.

Mar 22

Note

CMP 1625

Both targets reached.