MCX shares surge 8% to hit one-year high level; here's what analysts say

Shares of Multi Commodity Exchange of India Ltd (MCX) rose sharply in Tuesday's trading session. The stock soared 8.15 per cent to hit a 52-week high of Rs 3,168 against its previous close of Rs 2,929.15. The multibagger scrip has gained more than 120 per cent in the last six months. And, it has gained over 36 per cent in a month.

Recent spike in the share price came after the bourse finally switched to a new commodity derivatives platform (CDP) in mid-October.

On Saturday, MCX, in an exchange filing, said the company's board has decided to recover technology costs for the old platform from subsidiary firm, Multi Commodity Exchange Clearing Corporation Ltd (MCXCCL).

"MCX Board of Directors have at its meeting held on November 25, 2023, decided to recover technology cost for the old platform from MCXCCL as per the existing Resource Sharing Agreement, only till October 15, 2023 on 'pay for use basis'. The balance expenditure of Rs 35 crore approximately on the old platform, for the period October 16, 2023 to December 31, 2023, will be incurred by MCX," it stated.

Additionally, it is proposed to provide a maximum of Rs 25 crore of unsecured loan/Inter Corporate Deposit to MCXCCL, as and when required, the filing mentioned.

On techncial setup, support on the counter could be seen at Rs 3,050, followed by Rs 3,017 level.

"MCX India is bullish but also very overbought on daily charts with next resistance at Rs 3,311. Investors should book profits at current levels as a close below support of Rs 3,017 could lead to target of Rs 2,835 in the near term," said AR Ramachandran from Tips2trades.

"The stock may see Rs 3,200 level in the near term. For higher targets, one must keep stop loss placed at Rs 3,050," said DRS Finvest founder Ravi Singh.

The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs).

The stock's 14-day relative strength index (RSI) came at 77.91. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 236.44 against a price-to-book (P/B) value of 9.87.

The scrip has an analyst target price of Rs 2,427, Trendlyne data showed, suggesting a potential downside of 22 per cent in a year.

MCX, the country's first listed exchange, is a commodity derivatives exchange that facilitates online trading of commodity derivatives transactions.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

Also read: Multibagger defence stock rises for third straight session; what lies ahead?

Also read: Hot stocks on November 28: Adani Total Gas, Gujarat Pipavav, CG Power, Jio Financial and more

Also read: Stock recommendations for November 28, 2023: Vardhman Textiles, Divi's Labs and Granules India