This telecom stock meets the trend template of Mark Minervini

This telecom stock meets the trend template of Mark Minervini

by 5paisa Research Team Last Updated: Dec 17, 2021, 05:45 PM IST

The stock of Mahanagar Telephone Nigam Limited has marked a low of Rs 4.45 and thereafter it has maintained its rhythm of higher tops and higher bottoms on the weekly chart. From the low of Rs 4.45, the stock has gained over 500% in 121 weeks.

Currently, the stock also meets Mark Minervini’s trend setup criteria for investing. The current market price of the stock is above the 150-day (30-week) and the 200-day (40-week) moving averages. The 150-day moving average is above the 200-day moving average. Since the last 11 trading sessions, the stock is trading above its 200-day moving average. The stock is trading above its 200-day SMA by over 39.52%.

The 10-week moving average is also above both 30-week and 40-week moving averages. The current stock price is above the 50-day moving average. Also, the current stock price is over 151% above its 52-week low and currently, it is trading at a 52-week high. Its Mansfield Relative Strength (2.93) is over the zero line thereby, indicating the outperformance compared to the broader index i.e. Nifty 500. The Mansfield Relative Strength indicator is over the zero line for the last nine trading sessions.

The leading indicator, 14-period daily RSI is quoting at 75.52 and it is in rising mode. Recently, the momentum indicator weekly MACD line has crossed above the signal line, which resulted in the histogram turning positive. Moreover, Martin Pring’s long term KST set-up has also given a buy signal.

The stock is clearly on uptrend and trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is as high as 36.80 on a daily chart and 32.99 on a weekly chart. Generally, levels of 25 are considered a strong trend. In both time frames, the stock is meeting the criteria.

Talking purely about the trading levels, the level of Rs 32 will act as minor resistance, while on the downside, the 20-day EMA will act as strong support for the stock.

SENSEX
54,208.53
-109.94 (-0.20%)
Nifty 50
16,240.30
-19.00 (-0.12%)
Nifty Bank
34,163.70
-138.20 (-0.40%)
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SENSEX
54,208.53
-109.94 (-0.20%)
Nifty 50
16,240.30
-19.00 (-0.12%)
Nifty Bank
34,163.70
-138.20 (-0.40%)

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