Buy MTNL; target of Rs 50: IIFL

“MTNL on the weekly chart has generated trend reversal after formation of ‘falling wedge’ and close above Rs 47.5 with good volumes. The stock has already went through correction phase of almost 90% and after formation of ‘falling wedge’ the stage is set for prices to bounce back towards Rs 68 in near term. However from conservative point of view , we expect stock price to face some hurdles around 50 levels and beyond that stock price could accentuate towards Rs 68. A positive crossover on daily RSI above the 50 mark , reinforces strength in the counter and at times of volatility in broader markets stock could act as a defensive bet. We advise buying stock in the range of Rs 47-47.75 with stop loss of Rs 46.75 for Target of Rs 50( Duration 5 days),” says IIFL research report.

See which stocks FIIs have sold in last qaurter?

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.