{"id":291825,"date":"2013-02-11T11:29:11","date_gmt":"2013-02-11T05:59:11","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=291825"},"modified":"2013-02-11T11:46:14","modified_gmt":"2013-02-11T06:16:14","slug":"analysis-mtnl-mte-2","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/02\/11\/analysis-mtnl-mte-2\/","title":{"rendered":"Analysis: MTNL (MTE)"},"content":{"rendered":"

Today\u2019s 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\u2019s 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%<\/strong><\/b> vs. +4% of the Nifty\u2019s.<\/p>\n

\"MTNL<\/a><\/p>\n

Oscillator RSI<\/a> and CMO<\/a> are closing in towards the over-sold territory. The stock is trading close to the lower end of Bollinger band<\/a> giving an upward<\/b> bias.<\/p>\n

The MACD<\/a> line and the signal line are moving parallel to each other and suggest the short \u2013term downtrend to continue<\/b>. Also, Long-term GMMA<\/a> lines are starting to converge given the range-bound movement of the stock.<\/p>\n

\"MTNL<\/a><\/p>\n

MTNL\u2019s average correlation<\/a> with the Nifty<\/a> is 0.57 which is positive<\/b> and strong<\/b>. The scrip will be replicating movement of Nifty closely. [stockquote]NIFTYBEES[\/stockquote]<\/p>\n

\"MTNL<\/a><\/p>\n

MTNL has a historical volatility<\/a> in the range of 0.4 to 1.2. The scrip\u2019s volatility is currently in the lower end of the range.<\/p>\n

\"MTNL<\/a><\/p>\n

Analysts continue to be bearish about the stock, and are distributed amongst underperform and sell calls.<\/p>\n

Given these technicals and analysts call, we suggest a short-term sell<\/b>. For the long-term, we could take a call based on the behavior of GMMA lines.<\/p>\n

Read experts advice on the sector here<\/a>.<\/p>\n

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