MMTC shares crash 19% in two sessions; analysts suggest bearish trend

MMTC Ltd shares continued their steep fall for the second straight session in Thursday's trade. The stock dived 10 per cent to settle at a lower price band of Rs 70.55 over its previous close of Rs 78.38. It has tanked 18.98 in just two sessions. Despite the said fall, the counter has given multibagger returns in the last six months and rallied 141.94 per cent. On BSE, around 3.21 lakh shares changed hands today. The figure was lower than the two-week average volume of 42.63 lakh shares. Turnover on the counter stood at Rs 2.26 crore, commanding a market capitalisation (m-cap) of Rs 10,582.50 crore.

On technical setup, analysts said the counter looked 'bearish'.

DRS Finvest founder Ravi Singh said MMTC share price may touch Rs 50 level in the coming trading days. "Delisting reports have triggered panic sell-off in the counter," the analyst mentioned.

AR Ramachandran from Tips2trades said, "MMTC looks bearish on daily charts. It may decline till Rs 50 in the near term."

The counter was trading lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150-, 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 57.11. 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 9.76 against a price-to-book (P/B) value of 9.30.

The stock has a one-year beta of 1.42, indicating high volatility.

MMTC is an international trading company. At present, the government holds an 89.93 per cent stake in the PSU.

(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.)

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