Equity Alert: Tata Comm up 4% on fund buying; resistance 480 rupees
MUMBAI--11:40AM--Shares of Tata Communications were up 4.33% at
464 rupees
on fund buying and amid talk the government is close to working out a
plan to
sell the company's surplus land across India, dealers said.
Out of the sale proceeds, 50% will go to government and 29% to non-
Tata
Communication shareholders.
The company will also have "first mover advantage" when the
Department of
Telecom conducts simultaneous auctions for third generation mobile
services and
broadband wireless technologies such as WiMax, said analysts.
"The company has started rolling out services under WiMax
platform. Now,
with government releasing spectrum, the company can target retail
customers,"
said Deepti Chauhan, analyst, Asit C. Mehta Investment Intermediates.
This positive news is the reason for gains in the stock today,
Chauhan said.
"The stock is near its major resistance of 480 rupees. If there
are no major
triggers, one can book profits at these levels, and wait for lower
range of 425
rupees to buy," said Shrikant Chouhan, vice president, technical
research,
Kotak Securities.
So far today, 722,836 shares have been traded on NSE. October
futures
contract was at 4-rupee premium to spot, with 7.5% rise in open
interest.
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