Tata Teleservices (NSE: TTML) share price is having the first green day of the week. After a 9% drop at the start of the week, the shares are trading back at their weekly open. Tata Tele shares tagged the key psychological level of ₹50 on Wednesday but recovered immediately. This shows that there is a strong demand below this level.
On Friday, the Indian share market opened in green after a public holiday. The benchmark indices Nifty 50 and Nifty 100, both showed positive price action and gained 279 and 268 points, respectively. The positive sentiment was also reflected in the Tata Teleservices shares, which opened 4.92% above their previous close.
Indian Telecos Pile Up A Huge Debt
The Indian Minister of Start for Telcom, Devusinh Chauhan, informed the parliament that six major telecom companies of the county collectively had a total debt of ₹4.17 lakh crore. Vodafone and Reliance had the most debt amounting to ₹1,91,073.9 crore and ₹1,03,408 crore, respectively. Tata Teleservices (Maharashtra) was also among these companies, with a total debt of ₹19,703.84 crore.
In other news, Tata Teleservices is going to offer Google Workspace to businesses through Google cloud. Nevertheless, due to its weak financials, Tata Tele share price has remained in a tailspin for the last 12 months. At the moment, the shares are 87% down from their 2022 all-time high of ₹290.
Tata Teleservices Share Price Accumulates Below Support
The following chart shows that Tata Tele shares have broken below the ₹63.75 support. As mentioned in our previous analysis, the next support lies at ₹46. Currently, the shares are accumulating between these two levels, but I expect a drop to ₹46 soon.
Tata Teleservices share price forecast will flip extremely bearish if it breaks ₹46 support. In such a scenario, I expect the price to drop to its ₹34 support. This will be a 37% drop from the current price. The only way to avoid this bearish outlook is to break above the ₹63.75 level soon. The broader market sentiment will play a key role in this recovery.
Follow Abdullah Sarwar on Twitter for key insights on stocks & cryptocurrencies.