In the previous session, the Nifty Index saw a negative opening in the morning session. The index rebounded at an important support level and recovered all losses as the day progressed. Later we saw consolidation with positibe bias throughout the day. The Index formed a Bullish Candle on the daily chart and closed with a net gain of 126.10 points. Traders should be focused on Sector and stock specific strategy for the next trading day.

Look at the below research report of ‘Stocks to Buy for Tuesday, October 18, 2022’ before the market opens.

Tata Communications Ltd

In the hourly time frame, share prices are moving in the form of ‘Inverted Head and Shoulder’ pattern. As shown on the chart, prices have given a breakout above the neckline after the right shoulder has completed near 1192 levels. As per pattern theory, 58 points movement on upside can be expected in coming days.  As shown on the chart stock comfortably closed above the middle band of Bollinger Band indicator which indicates short term bullishness.

As the chart looks attractive, one can initiate buy at current levels and add more on dips around support levels near 1192 levels which can take price towards 1250 levels. This outlook is valid as long as we do not see any closing below the neckline of the pattern near 1160 levels.

Check More Analysis on TATACOMM at: Tata Communications Ltd