Analysis: MTNL (MTE)

Today’s pick is MTNL [stockquote]MTNL[/stockquote]. The stock has been range bound for most part of the year. However, after reaching the 52 weeks high at 43, the stock is in a continuous downtrend. In the last three month period, the stock tanked -33% Vs. 11% as that of Nifty’s return.


Oscillators RSI and CMO are at currently at 38 and -32 are hovering close to over-sold territory.

MACD line and the signal line are moving very close to each other and are not suggesting any trend.

The GMMA long-term as well as short-term lines are running very close to each other and are not able to suggest any direction.

The short-term technicals show a 4X9 bullish cross-over for the stock.


MTNL’s average correlation of 0.58 with the Nifty is positive and strong. The stock will replicate the movements of Nifty because of the co-efficient. [stockquote]NIFTYBEES[/stockquote]


MTNL has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility is currently towards the lower side of the range.

Analysts have mixed expectations regarding this stock. Next set of earnings can help bring a different picture on the charts.

Looking at these technicals a short-term buy is suggested, but one should be cautious. The long-term trend-line is headed to the pits.

Enhanced by Zemanta

Comments are closed, but trackbacks and pingbacks are open.