Tata Teleservices share price has been rangebound as global stocks recoil in the past few days. The TTML stock is trading at 125.25, which is the lowest level since March this year. In total, the shares have crashed by about 60% from the highest point this year as investors focus on the company’s slow growth. The Nifty 50 index has crashed by about 15% from its highest level.
Tata Teleservices is a technology company that is part of the broader Tata Group, one of India’s biggest companies. The company works with companies in and outside India to provide technology services that simplify their businesses. Its business is divided into several arms such as cloud and SAAS, collaboration, data services, voice, marketing, and cyber security.
For example, the firm offers smart internet bundled with cloud-based solutions. Some of its biggest customers are companies within Tata Group and large multinationals like Whirlpool, WAHL, and Wipro. Because of the sensitivity of its business, the Tata Teleservices business has been in high demand, which helped push the Tata Teleservices share price up by over 6,500% from its lowest level in 2020.
However, a closer look at earnings of its biggest partners like Microsoft and Zoom shows that the tech sector is slowing. As such, there is a high probability that the share price will ease slightly as investors start taking profit.
Tata Teleservices share price forecast
The weekly chart shows that the TTML share price has been in a strong bullish trend in the past few months. While the stock has pulled back slightly, it remains above the 50-week moving average. It has hovered above this moving average since October 2020. As shown, it found a strong support at this level on March 7th of this year.
Another look shows that the Tata Tele share price has formed what looks like a double-top pattern. Therefore, the outlook for the stock is bearish as long as it moves below the 50-week moving average. A move below that level will see it crash to the next reference point at 58.95, which is 52% below the current level. On the other hand, a move above the resistance at 206 will invalidate the bearish view.
