MMTC shares jumped sharply in early trading on Wednesday, continuing a strong rally for the third day in a row. The small-cap stock surged as much as 9.22% to reach ₹69.49 per share on the Bombay Stock Exchange.
High Trading Volumes Signal Strong Interest
Trading activity in MMTC shares increased dramatically. Approximately 2 crore equity shares changed hands on stock exchanges on January 14. This figure far exceeds the one-week average trading volume of 48 lakh shares and the one-month average of 1 crore shares.
Gold and Silver Rally Drives MMTC Performance
The sharp rise in MMTC share price appears directly linked to soaring gold and silver prices. MMTC is a government-owned trading company that specializes in precious metals. The public sector unit plays a crucial role in importing, exporting, and domestic trading of these valuable commodities.
Precious metals have been experiencing a powerful bull run. Gold and silver prices have climbed to record high levels, fueled by global geopolitical tensions and increased safe-haven demand. MMTC typically benefits from higher bullion prices and increased trading activity, making it a direct beneficiary of the current precious metals rally.
Technical Analysis Points to Continued Strength
From a technical perspective, MMTC share price has broken out of a well-defined bullish flag pattern on daily charts. This signals a continuation of the short-term uptrend. The consolidation phase was tight and orderly, suggesting controlled profit booking rather than distribution, according to Anshul Jain, Head of Research at Lakshmishree Investments.
"Volumes have started to expand during the breakout phase, indicating improving participation and early institutional interest," Jain noted. "The structure remains constructive as price holds above key short-term moving averages, which are now acting as dynamic support."
Jain emphasized that a decisive move and sustained position above ₹70.47 would be critical for confirming momentum acceleration. "If this level is cleared with volume follow-through, the flag projection opens up toward the ₹78 to ₹78.5 zone," he explained.
The analyst noted that risk-reward remains favorable while the price holds above the flag base, with any dip toward rising averages likely to find buying interest. "Failure to sustain above the breakout zone would delay, but not immediately negate, the bullish setup," Jain added.
Impressive Historical Performance
MMTC share price has demonstrated strong performance across multiple time frames:
- Rallied over 25% in one month
- Gained 2% in the past six months
- Jumped 94% in three years
- Delivered multibagger returns of 116% in five years
By 10:15 AM, MMTC share price was trading 8.96% higher at ₹69.32 per share on the BSE.
Disclaimer: The views and recommendations mentioned above belong to individual analysts or broking companies, and not to Mint. Investors should consult certified experts before making any investment decisions.
