MTNL share price jumps 20% to hit upper circuit; what's driving this telecom stock?

MTNL share price: A day after clocking a solid gain of over 6 per cent, shares of Mahanagar Telephone Nigam (MTNL) surged as much as 20 per cent to hit their upper price band of ₹57.16 in intraday trade on BSE on Wednesday, February 5. MTNL share price opened at ₹54 against its previous close of ₹47.64 and jumped to the level of ₹57.16. Around 3:20 PM, the stock traded 17.72 per cent higher at ₹56.08.

What's driving MTNL stock price?

Considering today's high of ₹57.16, the telecom stock has surged almost 28 per cent in the last two sessions. The stock has gained momentum amid asset monetisation buzz.

According to media reports, DIPAM (Department of Disinvestment and Public Asset Management) Secretary Arunish Chawla reaffirmed the government's commitment to helping MTNL and BSNL monetize their assets. The move aims to unlock value, clear liabilities, and revitalize the sector.

“The MTNL share price is rising today after the DIPAM Secretary's recent announcement to monetize the company's assets. This has triggered buying interest in the state-owned telecom stock, as the company has enough assets in Mumbai and Delhi,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

However, Gorakshkar added that a concrete divestment proposal is still awaited, and investors are advised to remain vigilant about such development.

“The current rise is entirely sentimental, as Finance Minister Nirmala Sitharaman did not share such a move in her Budget 2025 speech,” said Gorakshkar.

MTNL shares: What do technical charts indicate?

MTNL stock is trading above its 200-day exponential moving average (EMA) of ₹48.20.

It hit a 52-week high of ₹101.88 on July 29 after hitting a 52-week low of ₹31.24 on March 20 last year.

According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, on the daily chart, MTNL stock has broken out above the Ichimoku cloud, confirming bullish strength.

The price action has also breached the R4 Camarilla resistance pivot, reinforcing the positive momentum for the upcoming sessions.

"Given this setup, we recommend going long in the ₹53-54 zone, as the breakout suggests further upside potential. The target is set at ₹64, aligning with the next resistance level, while the stop-loss should be placed at ₹48 on a daily closing basis to manage risk. Traders should watch for sustained strength above these levels to confirm continued upside movement," said Patel.

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