Today’s pick is MPHASIS [stockquote]MPHASIS[/stockquote]. The stock had a real good start of the year with an uptrend till April, but it could not sustain the momentum and crashed to its trend-line to find support. Since then it has been in an up-trend finding constant support in the trend-line until recently, where it closed below the trend-line. In the last three months, the stock has moved – 6% vs. 5% of the Nifty’s.
Oscillators RSI and CMO are nearing over-sold territory.
The MACD line and the signal line are moving close to each other – directionless. Both long-term and short-term GMMA lines are seeing a constrained movement leading to an indecisive future for the stock. Short-term technical gave a 4×9 bullish signal for the stock last week.
MPHASIS’s average correlation with the Nifty is 0.30. The scrip will be not be replicating the movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]
MPHASIS has a historical volatility in the range of 0.4 to 1.4. The scrip’s volatility currently is in the lower part of the range.
To conclude, given these technicals, the stock is a short-term HOLD. For the long-term we will take a stand based on how the long-term GMMA lines unravel themselves.
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