Investors are abuzz with excitement as MMTC Ltd shares continue their remarkable upward trajectory, rallying an impressive 42.70% in just four days. On the latest trading day, the stock soared by 13.11%, hitting a 52-week high of Rs 79.90.
This surge in price was accompanied by an extraordinary trading volume on the BSE, with approximately 92.79 lakh shares changing hands, a staggering figure that surpassed the two-week average volume of 18.46 lakh shares. The robust trading activity has elevated the turnover to Rs 71.14 crore and boosted the market capitalization (m-cap) to Rs 11,425.50 crore.
In response to the soaring share volume, MMTC issued a statement to clarify that there was no significant event warranting reporting to the stock exchanges under Regulation 30 of the SEBI (LODR) Regulation 2015. The company emphasized that there was no news that might impact the stock prices or trading volumes of its equity shares.
When analyzing the technical setup, it's noted that the support levels for MMTC shares could be observed at Rs 69 and Rs 65, while resistance may manifest between Rs 80 and Rs 90 levels. Experts in the field have shared their perspectives on the current situation.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, commented on the stock's recent performance, highlighting its 85% returns over the last two months. Patel pinpointed Rs 65 as a credible support level and identified resistance near Rs 88 and Rs 90. Patel also noted that indicators suggest the stock may be overstretched, possibly indicating an imminent correction.
AR Ramachandran from Tips2trades added that MMTC, while overbought, remains bullish on daily charts, pointing to the next resistance level at Rs 85.45. He advised investors to consider booking profits at current levels and remain cautious as a daily close below the Rs 69 support could lead to a drop to Rs 53 in the near term.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, observed that after a consolidation period near the Rs 57-60 zone, MMTC has shown a significant surge with significant volume participation. Parekh set the next target price at Rs 84.
Kush Ghodasara, Independent Market Expert, CMT, highlighted MMTC's strong upward move with heavy volumes. Ghodasara suggested investors go long, targeting Rs 86 with a stop loss at Rs 59.
Despite the rapid rally, MMTC's share price is trading higher than various short-term and long-term moving averages. Additionally, the 14-day relative strength index (RSI) for MMTC came in at 78.29, indicating the stock is currently overbought. The company's stock boasts a price-to-equity (P/E) ratio of 8.80 against a price-to-book (P/B) value of 8.38, and it holds a one-year beta of 1.34, indicating high volatility.
MMTC, an international trading company, currently sees the government holding an 89.93% stake in the PSU.