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We recommend a buy in Mahanagar Telephone Nigam from a short-term perspective. From the charts of Mahanagar Telephone Nigam, we see that the stock has been trending up from its 52-week low of Rs 92 (touched on March 24). The positive divergence in the daily momentum indicator had supported the stock and aided its upward reversal. During the current up move, the stock crossed over 21- and 50-day moving averages one after other. We notice that there is an increase in volume over the past two weeks. The daily moving average convergence and divergence had displayed a positive divergence and it is on the verge of entering the positive territory. The daily momentum indicator is featuring the bullish region and the weekly momentum indicator has entered the neutral region from the bearish zone.

Our short-term outlook for the stock is bullish. We expect the stock to move up to our price target of Rs 128 in the short-term. Investor with short-term perspective can buy the stock while keeping the stop-loss at Rs 106.

Yoganand D.

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