Tata Teleservices Share Price Eyes A Retest of Rs 70.50 Support
Ivano-Frankivsk, Ukraine - May 10, 2019: Tata company logo on the phone screen. Tata is an Indian multinational automotive manufacturing company.
Tata Teleservices (NSE: TTML) share price has been experiencing a sell-off since the release of its Q1 financial results. The shares of the Indian telecom and cloud services provider are now trading 12% below their July high of Rs 87.25.
Since the start of August, Indian equities have been in a correction. During this time, the benchmark indices Nifty 50 and BSE Sensex have retraced 2.06% and 2.07% respectively. The negative sentiment could be attributed to the increasing oil prices and the slower-than-expected recovery in China.
Tata Tele Business Services Reports Rs 301 Crore Loss In Q1
In the recently released Q1FY24 financial results, Tata Tele Business Services reported revenue from operations of Rs 285.51 crore. This was an increase from Rs 266.48 crore on a YoY basis. However, the most concerning thing for the investors was the increase in net loss from the same period last year.
In Q1FY24, the broadband services provider reported a net loss of Rs 301.18. This was an increase from the Rs 295.1 loss in Q1FY23. The net loss also increased on a QoQ basis and triggered a sell-off in the Tata Teleservices share price. Just a week before the earnings, the stock had hit its yearly peak.
Tata Tele Services Share Price Forecast
Considering the following NSE: TTML chart, the price seems to be heading for a retest of the Rs 70.5 support level. This level was a huge resistance which was broken in June 2023. Before this level, there is also a demand zone around Rs 73.40 level.
My Tata Teleservices share price forecast will remain positive as long as the bulls hold the Rs 70.5 support level. A breakdown below this level could be catastrophic, opening the door for a deeper correction. The broader market sentiment of the Indian stock market will keep affecting the stock price in the coming weeks.
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