Tata Teleservices share price closed today’s trading session up 3 per cent. The surge in price comes after days of trading downwards which has resulted in a 5 per cent drop in July alone.
Is Tata Teleservices Struggling?
Following months of strong bearish moves that have seen Tata Teleservices drop by 45 per cent year to date, one question has continued to linger in most investors’ minds, why are the share prices dropping. This is especially true when compared to Indian indices such as the NIFTY 50 which is only down by 7 per cent.
However, there are many factors that have impacted the Tata Teleservices share price. For starters, the Indian Rupee has continued to underperform in the markets. Tata Teleservices offers its services worldwide. With the Indian Rupee losing value against the dollar, this has seen the company’s cost of operations go up because of the amount of money required to pay for international services going up. The imports by the company have also become expensive due to the Rupee losing value.
Tata Teleservices has also continuously struggled with becoming profitable. Although the company is a subsidiary of one of the largest conglomerates in India, the past few years have seen the company continuously fail to turn a profit. Therefore, combining the two factors, I can say that the Tata Teleservice company has continuously struggled in the markets.
Tata Teleservices Price
Looking at the chart below, the trend looks aggressively bearish. Despite closing the market up 3 per cent in today’s trading session, there is a high likelihood that we will see the share price resume the bearish trend in the coming sessions.
Therefore, my Tata Teleservices share price prediction expects the prices to continue trading downwards. There is a high likelihood that we will see prices trading below the 100 price level in the next few trading sessions. My analysis will only be invalidated by prices moving past the 120 price level.
Tata Teleservices Daily Chart
