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MMTC - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.5

Last Updated Time : 02 Feb 26, 09:51 am

Technical Rating: 2.5

Stock Code MMTC Market Cap 9,447 Cr. Current Price 63.0 ₹ High / Low 88.2 ₹
Stock P/E 229 Book Value 10.9 ₹ Dividend Yield 0.00 % ROCE 8.33 %
ROE 5.69 % Face Value 1.00 ₹ DMA 50 64.1 ₹ DMA 200 65.2 ₹
Chg in FII Hold -0.07 % Chg in DII Hold -0.07 % PAT Qtr 4.88 Cr. PAT Prev Qtr 36.7 Cr.
RSI 46.2 MACD 0.73 Volume 34,09,869 Avg Vol 1Wk 1,01,89,677
Low price 42.6 ₹ High price 88.2 ₹ PEG Ratio 7.90 Debt to equity 0.02
52w Index 44.7 % Qtr Profit Var -56.7 % EPS 1.13 ₹ Industry PE 32.3

📊 Chart Patterns & Trend: MMTC is trading at 63.0 ₹, slightly below its 50 DMA (64.1 ₹) and 200 DMA (65.2 ₹). This indicates a bearish consolidation with weak momentum. The stock is far below its 52-week high (88.2 ₹) and closer to its low (42.6 ₹), reflecting cautious sentiment.

📈 RSI: At 46.2, RSI is neutral, showing neither strong overbought nor oversold signals.

📉 MACD: Slightly positive at 0.73, suggesting mild bullish crossover but lacking strong momentum confirmation.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation with limited volatility expansion.

📊 Volume Trends: Current volume (34,09,869) is significantly lower than average weekly volume (1,01,89,677), showing weak participation and lack of conviction in recent moves.

🎯 Entry Zone: 60–62 ₹ (near support levels).

🎯 Exit Zone: 66–70 ₹ (near 200 DMA resistance and upper consolidation band).


Positive

  • Market cap of 9,447 Cr. reflects established presence in trading sector.
  • Debt-to-equity ratio at 0.02 shows near debt-free balance sheet.
  • MACD slightly positive, hinting at potential short-term recovery.

Limitation

  • Extremely high P/E of 229 compared to industry PE of 32.3, making valuation unsustainable.
  • ROCE (8.33%) and ROE (5.69%) are weak, limiting long-term compounding potential.
  • Dividend yield is 0.00%, offering no income return for investors.
  • PEG ratio of 7.90 indicates poor earnings growth relative to valuation.
  • Weak trading volumes reduce conviction in price action.

Company Negative News

  • Quarterly PAT declined sharply (4.88 Cr. vs 36.7 Cr.).
  • Quarterly profit variance of -56.7% highlights operational weakness.
  • FII and DII holdings both decreased (-0.07%), showing reduced institutional confidence.

Company Positive News

  • Debt-free balance sheet provides financial stability.
  • MACD positive crossover suggests mild short-term recovery potential.

Industry

  • Trading sector industry PE at 32.3, highlighting MMTC’s extreme overvaluation.
  • Sector outlook remains cyclical, with performance tied to commodity and trade flows.

Conclusion

⚖️ MMTC is in a bearish consolidation phase with neutral RSI and weak volume trends. Entry near 60–62 ₹ offers margin of safety, while exits around 66–70 ₹ provide profit-taking opportunities. Long-term investors should be cautious due to unsustainable valuations and weak fundamentals, while short-term traders may exploit mild MACD positivity for limited swing trades.

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