MCX

BSE Code ........ 534091| Tar­get 1 .... ₹1250 | Tar­get 2 .... ₹1305 I CMP : ₹1110

Flash News Investment - - DIWALI RECOMENDATION -

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.

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