BSE Code ........ 534091| Target 1 .... ₹1250 | Target 2 .... ₹1305 I CMP : ₹1110
The company is engaged in trading, clearing and settlement of commodity derivatives with 95% market share. It has delivered healthy Q2FY18 numbers with revenue and PAT growing 13.6% and 10.8%, respectively, led by 17% rise in average daily trading volumes. The b ounce back in bullion and metals after GST led to the uptick. The biggest positive for the company is the launch of options trading in commodities in October 2017, which is expected to boost topline and higher participation from banks, MFs, PMS, etc.
The stock, after registering a high of Rs 1259 in the month of April 2017, entered into a corrective phase and this correction was arrested around the level of Rs 930 as the stock formed a ‘Doji’ candlestick pattern. Thereafter, it entered into a pullback rally, which was halted near 78% retracement level, which led to a formation of lower high. Thereafter, the stock made a low of Rs 980, which led to the formation of a higher low. The entire process led to formation of a ‘Symmetrical Triangle’ like pattern, which is formed by a descending resistance line and an ascending support line. At present, the stock has witnessed breakout of ‘Symmetrical triangle’ like pattern along with decent volumes.