StockViz.Abhishek's  Instablog

StockViz.Abhishek
Send Message
Abhishek Preetam has an MBA in Finance and started his career as a big-data specialist working at Janalakshmi Social Services. Abhishek is a firm believer in technical analysis and a systematic approach to investing. He develops algorithms and automated portfolio management systems that crunch... More
My company:
StockViz
  • Analysis: MTNL (MTE) 1 comment
    Feb 11, 2013 1:30 AM | about stocks: MTE

    Today's pick is MTNL (NYSE:MTE). 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.

    (click to enlarge)

    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.

    (click to enlarge)

    MTNL's average correlation with the Nifty is 0.57 which is positive and strong. The scrip will be replicating movement of Nifty closely.

    (click to enlarge)

    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.

    (Reuters)

    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.

    This article first appeared on Your Money@StockViz.biz.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: MTE
Back To StockViz.Abhishek's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • joelkatz
    , contributor
    Comments (565) | Send Message
     
    NEW DELHI: The inter-ministerial group looking at reviving the state-run telecom operators met for the first time on Wednesday but could not reach any decision. The telecom department made a presentation to the group of ministers on refunding Rs 12,846 crore to BSNL and MTNL for surrender of BWA spectrum and made a case for sharing a large chunk of MTNL's Rs 7,500-crore pension liability to ease the telcos currently reeling under financial pressure.
    14 Jul 2013, 05:53 PM Reply Like
Full index of posts »
Latest Followers

Latest Comments


Most Commented
  1. Analysis: MTNL (MTE) ( Comments)
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.