Momentum Pick: Tata Communication under consolidation, long term bullish trends intact

Tata Communications shares are expected to break out of a narrow trading range soon. The major long-term trend remains bullish, and the stock has given returns of 29% over a year, outperforming the Nifty50 by 13%. The consolidation has become narrower over the past 8-10 months, and any range breakout on either side may confirm the stock’s further direction. The daily, weekly, and monthly Relative Strength Index remains flat, indicating a lack of strength on either side. Kotak Institutional Equities maintains an “Add” stance with a revised target price of Rs 1,300, while Motilal Oswal has a “Neutral” recommendation with a target price of Rs 1,200.