MMTC’s share price surged over 9% in early trade on Wednesday, continuing its uptrend for the third consecutive session. The small-cap stock rose as much as 9.22% to ₹69.49 per share on the BSE amid a huge surge in volumes. There was a tremendous increase in trading volume in MMTC shares. About 2 crore equity shares of MMTC were traded on the stock exchanges on January 14, while its one-week average trading volume is 48 lakh shares and one-month average volume is 1 crore shares.
Reason for rise in shares
This jump in the share price of MMTC is likely to be due to the sharp rise in gold and silver prices. MMTC is a government-owned trading company involved in precious metals trading. This public sector company plays an important role in import, export and domestic trade of precious metals.
condition of shares
Trading volume in MMTC shares suddenly increased manifold. About 2 crore shares were transacted on January 14, while its one week average volume was only 48 lakh shares and one month average was about 1 crore shares. This much buying indicates that along with retail, big investors have also increased interest in it. Generally, if the rise in a stock comes with volume, then it is considered stronger. From a technical point of view also, the chart of MMTC looks strong. According to Anshul Jain, Research Head, Laxmishree Investments, the stock has given a breakout from the bullish flag pattern on the daily chart, indicating continuation of the short-term uptrend. He says that if the stock sustains above ₹70.47, the upside may further increase and levels of ₹78 to ₹78.5 may be seen in the coming times. MMTC stock has risen by more than 25% in the last one month, while it has given multibagger returns of 116% in 5 years, which makes it more attractive for investors.
