Shares of Multi Commodity Exchange of India Ltd (MCX) continued their rise for the third straight session in Monday’s trade. The stock surged 9.30 per cent today to hit a 52-week high of Rs 1,950 over its previous close of Rs 1,784.05. On BSE, around 1.45 lakh shares changed hands at the time of writing this story. The figure was lower than the two-week average volume of 51,000 shares. Turnover on the counter came at Rs 27.46 crore, commanding a market capitalisation (m-cap) of Rs 9,827.39 crore. The scrip has gained around 32 per cent in the year so far and 56 per cent in a year.
The upward trend on the counter came amid reports suggesting the launch of a new trading platform by the end of this month. However, MCX is yet to issue an official statement.
On technical setup, analysts indicated that the stock looked ‘bullish’. Although, an analyst said investors should book profits at current levels.
“The stock is looking strong. It can go up to Rs 2,000 level. Both short-term and long-term indicators are supporting. RSI is also in a comfortable zone. Currently, bullish biasness is going on,” market expert Ravi Singh.
“MCX India looks very overbought yet bullish with next resistance at Rs 2,015. Investors should be booking profits at current levels as a daily close below support of Rs 1,833 could lead to Rs 1,610 in the near term,” said AR Ramachandran from Tips2trades.
Earlier in June, the commodity exchange had again extended its software support contract with 63 Moons Technologies Ltd, the former promoter of the bourse. MCX and 63 Moons said that the contract has been extended for a period of six months starting July 1, 2023.
MCX has repeatedly failed to switch to a new trading platform within stipulated deadlines. The contract has been renewed at a consideration of Rs 125 crore per quarter, which would be Rs 250 crore for a six-month tenure.
It had also communicated about the roll-out plan to migrate to the new commodity derivatives platform.
Commenting on the contract, 63 Moons, formerly known as Financial Technologies India Ltd, had said it once again agreed to the eleventh-hour request by MCX, which according to MCX is for the ‘last time’ for one more time.
This was the third time that MCX approached 63 Moons to extend the software support service arrangement after the long-term arrangement with MCX ended on September 30, 2022, and MCX selected a new technology service provider way back in February 2021.
MCX had to cancel several mock trading sessions which were aimed at checking the new trading platform. The technology support for MCX has been provided by 63 Moons, its erstwhile founder-promoter, ever since it started operations in November 2003.
In February 2021, Tata Consultancy Services (TCS) was selected as the vendor for the development of the new commodity derivative platform. MCX and TCS have been working on developing a new platform and they initially expected to go live by July 2022. But both the companies have encountered several delays since then.
MCX, the country’s first listed exchange, is a commodity derivatives exchange that facilitates online trading of commodity derivatives transactions.
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