TATA COMMUNICATIONS - TRADING AT MAJOR SUPPORT ZONESymbol - 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!
