Tata Communications is doing a balancing act around the 200-DMA. Technically, the 200-DMA is a critical level above which the bulls take charge while bears will take advantage below it.
Since last fourth months, levels of Rs440-470 has proved to be a decisive support zone for the stock. In last few trading sessions, the stock has recovered smartly from the levels of Rs440 and has registered a close above its 200-DMA on Wednesday.
We believe the stock has formed an intermediate bottom around the above support levels. Rebound from here is in progress and further upside cannot be ruled out.
Technical charts are appearing interesting from a medium term view and any corrections should be used as entry points. For the short-term, the support is around Rs468.
We recommend traders to BUY the stock in the range of Rs482-490 for a target of Rs520.