Breakout stock: Telecom major MTNL can gain 86% to Rs 100; check levels

Technical chart shows key resistance for the stock at Rs 61.70; break and sustained trade above the same can trigger a sharp rally at the MTNL counter.

Mahanagar Telephone Nigam (MTNL) stock has been buzzing in trades in recent days following reports that the state-run banks may take a haircut on the company's outstanding debt. Reports indicated that public sector banks (PSBs) may agree to a 20 per cent haircut on their Rs 8,144 crore exposure to the ailing telecom firm, with the loans turning into non-performing assets (NPAs).  However, according to the latest reports, the Union finance ministry has rejected MTNL's proposal for PSBs to take a haircut on their debt. READ MORE  That apart, Finance Minister Nirmala Sitharaman, in Union Budget 2025, announced a new scheme to provide broadband connectivity to all government secondary schools and health centres. MTNL largely provides telecom services in metropolitan cities Delhi and Mumbai.  Some reports also suggested that the Government will likely allow MTNL and BSNL to monetise their assets.  According to CNBC Awaaz, the government has reportedly cleared the decks to monetise non-core properties worth Rs 16,000-crore of the telecom firms; and also waived-off various charges and fees on these properties.  Following the reports, MTNL stock had hit the 20 per cent circuit on heavy volumes last Tuesday. READ MORE  A similar buzz in July 2024, had seen MTNL stock zoom by 143 per cent in a single month, and cross the Rs 100-mark in intra-day deals.    Can the stock witness another bull-charge, and re-test the Rs 100-mark? Here's what the technical chart suggests:  MTNL  Current Price: Rs 53.80  Upside Potential: 85.8%  Support: Rs 50.70; Rs 49.90  Resistance: Rs 61.70; Rs 71; Rs 88  MTNL stock has witnessed a breakout on the daily scale, and is seen trading consistently above the long-term 200-DMA (Daily Moving Average) for the last four trading sessions. The 200-DMA at present stands at Rs 50.70; below which stands the 100-DMA at Rs 49.90; thus implying presence of strong support around these levels. CLICK HERE FOR THE CHART  The long-term chart shows that MTNL has consistently found support around its 20-MMA (Monthly Moving Average) since September 2023. In the last two months, the stock has re-tested support around the key moving average, which stands at Rs 42.60 now.  Going ahead, the key hurdle for the stock stands at Rs 61.70. Breakout and sustained trade above the same can potentially trigger another sharp rally at the counter; which can lead the stock towards Rs 100-mark. Interim resistance for the stock can be expected around Rs 71 and Rs 88 levels.