BSE shares rallied 40% in a month; will this strong upmove continue further?

Shares of India's only listed stock exchange -- BSE -- were trading 3.16 per cent lower at Rs 3,978.30 in Monday's trade. Despite the mentioned fall, the stock has zoomed 40.34 per cent in the past one month and has delivered multibagger returns to investors by rallying 187.46 per cent in a year.

Around 39.76 lakh shares of BSE, which are listed on NSE, changed hands today at the time of writing this story for a traded value of Rs 1,613.60 crore. At these figures, market capitalisation (m-cap) came at Rs 53,609.04 crore.

Analysts largely remained positive on the counter. "BSE has been outperforming in the recent past. Sebi's new F&O regulations will not have much impact on its revenue. BSE is the country's only listed stock exchange and has been attracting investor interest," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. Market regulator Sebi has announced a slew of measures to tame speculative retail trading in F&O (futures and option) segment.

Technically, support on the counter could be seen at Rs 3,600, followed by Rs 3,400 level. On the higher end, the stock may hit an upside target of up to Rs 5,000 in the near term.

"We are positive on the stock and one can continue to hold on to the stock with a trailing stop loss. Potential upside targets for the near term are Rs 4,600-5,000," Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, told Business Today TV.

"For now, the Rs 3,600 zone seems to provide a cushion to any shortcomings, followed by strong support around Rs 3,400. On the flip side, amidst the overstretched parameters, the counter seems poised to continue its northward move into uncharted territory. However, having a pragmatic approach with trailing profits to a higher zone is prudent at the current scenario," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

Established in 1875, BSE (formerly known as Bombay Stock Exchange), is Asia's first and the fastest stock exchange in the world, with a speed of 6 microseconds and one of India's leading exchange groups. Over the past 143 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient capital-raising platform. Popularly known as BSE, the bourse was established as "The Native Share & Stock Brokers' Association" in 1875. In 2017, BSE became the first listed stock exchange in India.