MMTC shares rally 64% in 4 days; time to book profit or more upside possible?

Shares of MMTC Ltd on Wednesday continued their sharp upward run for the fourth consecutive session. The stock today surged 9.20 per cent to hit a 52-week high of Rs 68.75. At today's day high price, it has gained 63.57 per cent in four days. The multibagger PSU counter has rallied around 113 per cent in six months. Around 30.13 lakh shares changed hands today on BSE. This was higher than the two-week average volume of 19.69 lakh shares. Turnover on the counter came at Rs 20.01 crore, commanding a market capitalisation (m-cap) of Rs 9,985.50 crore. There were 2,82,291 sell orders today against buy orders of 1,52,375 shares.

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 88.67. 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 8.78 against a price-to-book (P/B) value of 7.47.

The stock has a one-year beta of 1.24, indicating high volatility.

Analysts were largely divided on the counter. One suggested booking profits at current levels, while another believed there's a bit more upside possible.

AR Ramachandran from Tips2trades, said investors should book profits at current levels as a close below support of Rs 60 could lead to target of Rs 44 in the near term.

Market expert Ravi Singh said the counter may touch Rs 70 level in the near future.

Kush Ghodasara, independent market expert at CMT, said it is prudent to avoid new positions on the counter and maintain existing ones with a trailing stop-loss at Rs 60.80.

In response to a query raised by stock exchanges on 'Movement in Volume', the state-run firm said, "As a listed company, we would like to inform you that MMTC Ltd regularly intimates about any significant event/news that may have a bearing on the stock prices. We would like to inform that there is no significant event in our knowledge which needs to be reported to the exchanges and which may have a bearing on the stock prices/volumes of trades of the equity shares of the company."

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

(Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.)

Also read: Hot stocks on September 6, 2023: NBCC, Syrma SGS Tech, Jio Financial, Vedanta and more

Also read: PM Modi to attend ASEAN-India, East Asia summits in Indonesia, Jupiter Life Line Hospitals IPO to open today in Top News on September 6: Share markets, Bank Nifty, Realme Narzo 60X, Moto G54 launch

Also read: Stocks to watch on September 6, 2023: Nykaa, TVS Motor Company, Route Mobile, Paytm, others