Tata Teleservices Share Price As Company Sets New Price Low

Tata Teleservices share price opened today’s market with a huge gap down of 4 per cent. During the trading session, the share price failed to move aggressively upwards, gaining less than a percentage point, and closed the markets down 3.6 per cent from Friday’s closing price. 

InvestingCube's S&R Levels

FTSE100

FTSE100 (6870.8)

Not in Sell Zone

STOP

SELL

TP1

6840

TP2

6750

Despite being a subsidiary of one of the largest conglomerates in India, with a market capitalization of over $150 billion, Tata Teleservices has continuously struggled throughout the year. In its latest financial report for the quarter between April and June, the company reported a marginal drop in its revenue from Rs 268.03 crore to Rs 266.48 crore. However, the company was still able to cut its losses from 328.45 crores to 295.1 crores year over year. 

Part of the reason we have seen the company struggling is due to the current strengthening of the dollar against the Indian Rupee. This has seen the company, which mostly deals with IT-related products having to import goods at a much higher cost due to its local currency rising. The rising inflation in India and around the world has also meant the cost of production and operations has also shot up. This has also resulted in recent company struggles, both in the stock market and financially. 

The Tata Teleservice Share Price Analysis

Looking at the chart below, the Tata Teleservice share price recently hit a new price low that the company has not traded at since November last year. The recent drop is an extension of what we have been seeing throughout the year, where the company has lost 58 per cent of its value. 

Unfortunately, the recent drop looks to be the beginning of a new long-term trend that is likely to continue for the next few trading sessions. I expect the prices to fall further down, with a likelihood that we may see Tata Teleservices trading below the 80 price level. My analysis will only be invalidated by prices moving past the 100 price level.

Tata Teleservices Daily Chart