MCX - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.3

📈 Chart Patterns & Trend: MCX is trading at ₹10,306, above both its 50 DMA (₹9,590) and 200 DMA (₹8,035). This indicates a strong uptrend with bullish momentum, as the stock is near its 52-week high of ₹10,516.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support lies near ₹9,600 (50 DMA) and ₹8,050 (200 DMA), while resistance is around ₹10,500–₹10,550.

📉 RSI: At 56.3, RSI is in the bullish zone but not overbought, suggesting room for further upside.

📈 MACD: Positive MACD (156) signals strong bullish momentum, supporting continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹10,500. A breakout above this level could trigger fresh highs.

📊 Volume Trends: Current volume (3.92L) is higher than the weekly average (3.31L), showing strong buying interest and confirming bullish sentiment.

🎯 Entry Zone: ₹9,800–₹10,000 (near support)

🚪 Exit Zone: ₹10,500–₹10,550 (near resistance/high)

Positive

• Strong ROCE (31.9%) and ROE (23.9%) reflect excellent efficiency and profitability.
• Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
• DII holding increased (+1.41%), showing strong domestic institutional support.
• Quarterly PAT stable at ₹156 Cr. vs ₹157 Cr. with YoY profit growth (+41.5%).
• EPS of ₹105 highlights strong earnings power.

Limitation

• High P/E (97.8) compared to industry PE (60.8) suggests overvaluation.
• FII holding decreased (-2.69%), showing reduced foreign investor confidence.
• Dividend yield at 0.29% is modest for income-focused investors.
• PEG ratio of 2.16 highlights expensive valuation relative to growth.

Company Negative News

• High valuation multiples raise concerns about sustainability of current price levels.
• Reduced foreign institutional participation adds pressure on sentiment.

Company Positive News

• Strong domestic institutional support with DII holdings rising.
• Quarterly profit growth and stable PAT performance highlight operational strength.
• Debt-free operations provide long-term resilience.

Industry

• Industry PE at 60.8 is lower than MCX’s PE (97.8), suggesting premium valuation.
• Exchange and financial services sector benefits from rising trading volumes and market participation.

Conclusion

📌 MCX is in a strong uptrend, trading above key moving averages with positive MACD and supportive RSI. Entry near ₹9,800–₹10,000 offers favorable risk-reward, while resistance at ₹10,500–₹10,550 provides exit targets. Strong fundamentals and profitability support long-term growth, though high valuation and reduced foreign participation warrant cautious optimism in the near term.