Author: Abhishek

Analysis: MTNL (MTE)

Today’s pick is MTNL [stockquote]MTNL[/stockquote]. The stock started saw a triple-top at the beginning of the year at Rs 35, and then moved down to find support around Rs. 22. After hovering around for a couple of weeks it started its up-move to see 52 week’s high of Rs 45 around September. Since then the stock has been on a slide, waiting to find any support. In the last three months, the stock has moved -13% vs. +4% of the Nifty’s.

MTNL technical analysis chart

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading close to the lower end of Bollinger band giving an upward bias.

The MACD line and the signal line are moving parallel to each other and suggest the short –term downtrend to continue. Also, Long-term GMMA lines are starting to converge given the range-bound movement of the stock.

MTNL Correlation chart

MTNL’s average correlation with the Nifty is 0.57 which is positive and strong. The scrip will be replicating movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

MTNL Volatility chart

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

MTNL Analysts coverage

Analysts continue to be bearish about the stock, and are distributed amongst underperform and sell calls.

Given these technicals and analysts call, we suggest a short-term sell. For the long-term, we could take a call based on the behavior of GMMA lines.

Read experts advice on the sector here.

The StockViz Reference Portfolio – Feb/08

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A down week for our portfolio, the portfolio crashed by 4.7%.

As the NIFTY dipped by 2.33% over the week, our momentum portfolio was down 4.7% underperforming NIFTY by over 2 percent. However, we continue the process of following a systematic repeatable process, with appropriate risk management steps and hope for a better performance in the coming week.

Talk to us about our Quantitative Portfolio Strategy Execution.

 

Weekly Recap

NIFTY.2013-02-04.2013-02-08

The NIFTY ended on a bearish note, melting down -2.19% for the week.
Biggest losers were JPASSOCIAT (-12.35%), BANKBARODA (-11.49%) and CIPLA (-8.14%).
And the biggest winners were TCS (+5.53%), HDFC (+3.97%) and SUNPHARMA (+3.64%).
Decliners eclipsed advancers 38 vs 12

fii.2013-02-04.2013-02-08
Gold: +0.38%, Banks: -2.77%. Infrastructure: -6.02%,

Net FII flows for the week: $1,843.29 mm

(Equity) and $112.15 mm (Debt)

 

 

Analysis: RCOM

Today’s pick is RCOM [stockquote]RCOM[/stockquote]. The stock started saw a rush to Rs. 110 levels in the starting of the year, but could not sustain the level, and started its downtrend to reach Rs. 50 by September. Since then the stock has been in an uptrend. In the last three months, the stock has moved +27% vs. +4% of the Nifty’s.

RCOM technical analysis chart

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading close to the lower end of Bollinger band giving an upward bias. Short-term technical just saw 18×9 bearish cross-over.

The MACD line and the signal line are moving parallel to each other and suggest the short –term downtrend to continue. Also, Long-term GMMA lines are starting to converge given the range-bound movement of the stock.

RCOM correlation chart

RCOM’s average correlation with the Nifty is 0.62 which is positive and strong. The scrip will be replicating movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

RCOM volatility chart

RCOM has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility is currently in the middle of the range.

Given these technicals and divergences we suggest a short-term sell. For the long-term, we could take a call given the stocks ability to stick to the trend-line in place. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.

Read what experts have to say about the Indian telecom sector here.