MMTC share price jumped over 9% in early trade on Wednesday, extending rally for the third consecutive session, amid spurt in volumes. The small-cap stock surged as much as 9.22% to ₹69.49 a piece on the BSE.
Trading volumes in MMTC shares spiked significantly. Around 2 crore equity shares of MMTC changed hands on stock exchanges on January 14 as compared to its one week average trading volume of 48 lakh shares, and one month average volume of 1 crore shares.
The jump in MMTC share price is likely driven by a sharp surge in gold and silver prices. MMTC is a government-owned trading company involved in precious metals. The PSU plays a vital role in the import, export, and domestic trade of precious metals.
The precious metals have been on a bull run. The gold and silver prices have surged to their record high levels led by global geopolitical tensions and increased safe-haven demand. MMTC tends to benefit from higher bullion prices and trading volumes. Thus, MMTC shares are likely to be a direct beneficiary of the current rally in the precious metals.
Technical Outlook
MMTC share price has broken out of a well-defined bullish flag on the daily chart, signaling continuation of its short-term uptrend. The consolidation was tight and orderly, reflecting controlled profit booking rather than distribution, noted Anshul Jain, Head of Research at Lakshmishree Investments.
“Volumes have started to expand during the breakout phase, indicating improving participation and early institutional interest. The structure remains constructive as price holds above key short-term moving averages, which are now acting as dynamic support. A decisive move and sustain above. ₹70.47 is the critical trigger to confirm momentum acceleration,” said Jain.
According to him, if this level is cleared with volume follow-through, the flag projection opens up towards the ₹78 to ₹78.5 zone. Risk–reward remains favorable while price holds above the flag base, with any dip toward rising averages likely to find demand.
“Failure to sustain above the breakout zone would delay, but not immediately negate, the bullish setup,” Jain added.
MMTC Share Price History
MMTC share price has rallied over 25% in one month and has risen 2% in the past six months. The PSU stock has jumped 94% in three years and has delivered multibagger returns of 116% in five years.
At 10:15 AM, MMTC share price was trading 8.96% higher at ₹69.32 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
