MTNL, Central Bank, Sutlej Textiles: 3 Stocks Below Rs 100 Are Bouncing From 50-Days EMA; Bulls Band Ahead?

Brokerage Angel One has identified three stocks trading below Rs 100 currently that have bounced from their 50-Days SMA (simple moving average) which is hinting a further wagon of rally ahead in them. 2 of them are smallcaps and 1 is midcap. They are Mahanagar Telephone Nigam (MTNL), Central Bank Of India, and Sutlej Textiles & Industries. These stocks have given double-digit returns in six months and are poised for further bullish activity.

According to Angel One's blog, the 50-day EMA bounce strategy is based on the idea that a stock price that retraces to its 50-day EMA and then bounces off of it may be a signal that the stock is poised for a rally. The strategy involves buying the stock when it bounces off of the 50-day EMA and then selling it when the price breaks below the 50-day EMA.

Mahanagar Telephone Nigam (MTNL):

As per Angel One's blog, MTNL stock has bounced from its 50-day EMA indication of strong bullishness on Friday. The stock also witnessed a price volume breakout on the same day.

On December 1st, MTNL shares ended at Rs 30.66 apiece, up by 7.02% on BSE with a market cap of Rs 1,931.58 crore. The stock has generated over 57% returns in six months.

On Trendline, the 50-SMA of the stock is priced at Rs 28.8, hence, MTNL surpassed this level. MTNL is trading above 6 out of 9 Oscillators in the bullish zone, and it is trading above its Pivot 30.2.

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and raise revenue for the telecom development needs of India's key metro cities of Delhi & Mumbai.

Central Bank of India:

Angel One's note said, the Central Bank of India is trading at a 50-day EMA and is likely to bounce back to upper levels as a strong resistance is just intact at Rs 41.40. Previously the stock price has bounced by forming a hammer candlestick pattern. As soon as stock price picks the momentum it may break the above trendline and show a good up move.

On December 1st, Central Bank Of India share price ended at Rs 44.30 apiece, up by 0.64% on BSE with a market cap of Rs 38,456.56 crore. This is currently near its 50-Days SMA of Rs 46.56 apiece.

In six months, this PSU lender's stock price zoomed by nearly 61% on the exchange.

Established in 1911, the Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. Among the Public Sector Banks, the Central Bank of India can be truly described as an All India Bank, due to the distribution of its large network in all 28 States and also in 7 out of 8 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 4493 Branches, 1 Extension counters, along 10 Satellite Offices (as of March 2023) at various centres throughout the length and breadth of the country.

Sutlej Textiles & Industries Ltd:

This smallcap textile stock touched a new 52-week high of Rs 69.30 apiece during trading hours of December 1st before correcting and ending at Rs 67.08 apiece, up by 5.8% on BSE. Its market cap is at Rs 1,098.96 crore.

As per Angel One, the stock witnessed a bounce back from a 50-day EMA and also a price volume breakout. The stock price has broken its 52-week high with the previous lower highs which may act as a resistance.

The stock has crossed its 50-Days SMA of Rs 55.8. As per Trendlyne, the sock is trading above 8 out of 8 SMAs, and also above 7 out of 9 Oscillators in a bullish zone.

In a six-months span, Sutlet shares have skyrocketed by nearly 41% on BSE.

Sutlej Textiles and Industries is currently the flagship textiles company of the illustrious KK Birla Group. The company aims to become a global textile front runner, providing wide spectrum solutions to the textile industry, from speciality yarns to fabrics; thereby maximising value for our clients and in turn, becoming their preferred partner.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.