MTNL stock at ₹51, risky or bargain buy? Here's what chart indicates

MTNL stock seems favourably placed on the short-term charts. Can the recent flow at the counter help it breakout on the long-term chart or will it falter? Here are the key levels to watch out for.

Debt-laden Mahanagar Telephone Nigam Limited (MTNL) has been in news lately, with the state-run firm reportedly defaulting on the payment of principal and interest on loans amounting to ₹8,584.93 crore to state-run banks.  The overdue amount to PSU banks - Union Bank, Bank of India, Punjab National Bank, SBI, UCO Bank, Punjab and Sind Bank and Indian Overseas Bank stands at ₹7,794.34 crore, and interest of ₹790.59 crore. READ MORE  MTNL total debt stands at 34,484 crore, which also includes Sovereign Gold bonds worth ₹24,071 crore, and payment of interest (₹1,828 crore) on Gold bonds to the Department of Telecom (DoT).  In order to help the state-run telecom companies raise capital, the government has allowed MTNL, BSNL and ITC to sell assets, including land parcels and buildings, without auction. Reports suggest that these two telecoms raised up to ₹12,984 crore by way of monetisation of assets thus far since 2019.    Meanwhile, the government recently extended the additional charge of DoT senior official Ravi A Robert Jerard as the chairman and managing director of MTNL by another three months.  Amid this news flow, which way will the MTNL stock swing? Here's a detailed technical outlook on the telecom stock. 

MTNL

Current Price: ₹50.8  Likely Target: ₹70  Upside Potential: 37.8%  Support: ₹50.43; ₹48.59; ₹47.81  Resistance: ₹56.40; ₹58.50; ₹62; ₹67  MTNL stock is seen trading with a favourable bias on the daily chart since the breakout in mid-May 2025. The stock at present trades above its key moving averages such as the 20-Day Moving Average (20-DMA), 50-, 100- and 200-DMAs. Further, the stock on July 14 (Monday) witnessed the 'Golden Cross' formation on the daily chart.   

  A 'Golden Cross' formation means that the 50-DMA, which now stands at ₹48.59, is seen quoting above the long-term 200-DMA at ₹47.81. This particular crossover is considered bullish in technical terms, as it shows that the support is moving higher for the stock.  The short-term bias for MTNL is likely to remain positive as long as the stock trades above ₹45.65 levels; with near support seen at ₹50.43, ₹48.59 and ₹47.81, levels.  On the upside, the stock faces a critical overhead resistance of ₹56.40 levels, in the form of the weekly super trend line. The stock has been languishing below the same post the breakdown in the first week of September 2024.  For the medium-to-long term bias to turn favourable, MTNL stock will need to conquer this key hurdle. Following which, a rally towards ₹70-odd levels seems possible. Intermediate resistance can be anticipated around ₹58.50, ₹62 and ₹67 levels.