Stock Analysis : Mahanagar Telephone Nigam Ltd.

Mahanagar Telephone Nigam Ltd closed at Rs 103.80, down Rs 3.55, or -3.31%. It has touched an intraday high of Rs 108.90 and an intraday low of Rs 103.25 in BSE on 31-July-2008.

It was trading with volumes of 546048 shares in BSE. On 30-July-2008 the share closed at Rs 107.35.

Currently the stock is around -50% below the 52-week high of 219.45 and around 20% above the 52-week low of 83.20.

Mahanagar Telephone Nigam Ltd has a PE of 13.33 with a EPS of 8.05. It had given good results and the market capital of this company is around 6539 Crores. Fundamentally the stock is good and can deliver profits soon.

Suggestion to Investors:
(1) I recommend a buy in Mahanagar Telephone Nigam Ltd (MTNL) from a short-term perspective. It is evident from the charts of MTNL that from its 52-week high of Rs 219, the stock tumbled steeply during January 2008. This down-move continued until the stock found support at Rs 83 in early July.

(2) Since then it has been charting a short-term uptrend. I notice that the stock has formed a falling wedge pattern (a bullish pattern), spanning over the past five months. On July 24, the stock broke out of this falling wedge pattern by gaining 7 per cent with extraordinary volume.

(3) The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) is featuring in the bullish zone.

(4) The weekly RSI is displaying a prolonged positive divergence and has entered into the neutral region from the bearish zone. The moving average convergence and divergence has entered into the positive territory.

(5) My short-term forecast of the stock is bullish. I expect the stock to move up until it hits my price target of Rs 115 in the upcoming trading sessions.

(6) Traders with short-term perspective can buy the stock, while maintaining a stop-loss at Rs 98.

(7) Mtnl has approved 25% final dividend and 2:5 bonus issue. Share will touch Rs 200 by end of this quater.
Mahanagar Telephone Nigam Ltd Company Update:
Mahanagar Telephone Nigam Ltd. has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2008 as follows: Net Sales of Rs. 112164.8 lacs for quarter ending on 30-JUN-2008 against Rs. 119568.7 lacs for the quarter ending on 30-JUN-2007. Net Profit / (Loss) of Rs. 11519.7 lacs for the quarter ending on 30-JUN-2008 against Rs. 11090.3 lacs for the quarter ending on 30-JUN-2007.
Recommendations:

Short term: HOLD

Medium term: HOLD AND AVERAGE

Long term: BUY

All views are my personal views about the stock investors should at his own risk
GHANENDRA VEER VIKRAM!!