MMTC shares up 10% in two sessions; here's what technical analysts say

Shares of MMTC Ltd rose sharply for the second straight session in Tuesday's trade. The stock jumped 5 per cent to hit its upper price band of Rs 57.06. The counter has rebounded 10.22 per cent in two days. The scrip has given multibagger returns in the last six months, by rallying 101.84 per cent. Despite the mentioned rise, the counter recently came under severe pressure amid delisting reports.

MMTC, in an exchange filing, said that its wholly-owned subsidiary, MTPL Singapore, has received a winding up order from Singapore High Court. "However, the final order is still awaited. The High Court of The Republic of Singapore heard the matter and ordered the winding up of MTPL, Singapore with reference to UCO Bank, Singapore, regarding default made by it in repayment of its commercial transactions to its creditors and other banks," the company stated.

In a separate development, the PSU firm has fixed November 15 as record date for the purpose of declaring dividend, if any. Also, MMTC is scheduled to hold its annual general meeting (AGM) on November 22.

On technical setup, analysts largely remained mixed on the counter. Support could be seen around Rs 50-49 levels.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "MMTC traded on a highly volatile note in October, wherein it soared to 52-week high (Rs 89.20) and eventually eroded all the gains by the month end. On the technical parameters, the immediate resilience is placed near Rs 60-odd zone, surpassing which the counter may again enter the up trend towards Rs 68-70 odd zone. On the flip side, the support is placed around Rs 50-49, breaching which the view may disrupt in the short run, and the counter could test the Rs 43-42 odd zone (from where the rally has been initiated) in the comparable period."

DRS Finvest founder Ravi Singh said, "The stock is trading around the levels of Rs 57 and the underlying weak sentiments are expected to prevail till some more time." MMTC may touch the levels of Rs 50-45 in the near future, he added.

AR Ramachandran from Tips2trades said MMTC has strong support at Rs 49.7. "A daily close above resistance of Rs 58.7 could lead to target of Rs 66 in the near term," Ramachandran mentioned.

The counter was trading higher than the 5-day, 100, 150- and 200-day simple moving averages (SMAs) but lower than the 10-day, 20-, 30- and 50-day SMAs. The counter's 14-day relative strength index (RSI) came at 45.73. 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 6.77 against a price-to-book (P/B) value of 6.45. The stock has a one-year beta of 1.62, indicating high volatility.

MMTC is an international trading company and deals in minerals. 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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