Tag: MTNL

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.

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.

stock

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.

cor

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]

vol

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.

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