MCX shares slip 9% as SEBI delays launch of new technology platform

Shares of Multi Commodity Exchange of India (MCX), the country's largest commodity derivatives exchange, slipped 9% to Rs 1914.60 in early trade today after market regulator SEBI imposed a temporary suspension on the planned launch of its new tech platform. The stock of MCX hit an all-time high of Rs 2119.60 on Thursday. In fact, the stock gained 16% in the last five sessions ahead of the planned launch on October 3.

Market cap of MCX fell to Rs 9916.38 crore. The stock has a beta of 0.7, indicating very low volatility in a year.

The stock has gained 33% this year and risen 64% in a year. Total 1.39 lakh shares of the bourse changed hands amounting to a high turnover of Rs 27.02 crore.

In terms of technicals, the relative strength index (RSI) of MCX stands at 80.7, signaling it's trading in the overbought territory. MCX shares are trading higher than the 5 day, 10 day, 20 day, 30 day 50 day, 100 day, 150 day and 200 day moving averages.

MCX in an exchange filing said, "The regulator has informed that since the matter involves technical issues, the same would be discussed in the SEBI Technical Advisory Committee meeting, which would be held shortly. Meanwhile, SEBI has advised the exchange to keep the proposed Go-Live of CDP in abeyance."

"As the Exchange is ready and keen to go-live as soon as permitted, the exchange will continue to conduct CDP mock tests pending further directions in the matter from SEBI," it added.

As per the October 3 launch date, the new platform was about to go live three months ahead of the December deadline. MCX's contract with 63 Moons Technologies Ltd, the tech company which oversaw its trading operations, ended in September 2022.

Commenting on outlook of the stock, Abhijeet from Tips2trades said, “MCX India stock was very overbought yet bullish with strong resistance now at Rs 2015. Investors should be booking profits at current levels as a daily close below support of Rs 1895 could lead to Rs 1710 in the near term."

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