MCX Share Price: Turning bullish on Multi-Commodity Exchange (MCX), domestic brokerage firm HDFC Securities has maintained its ‘buy’ rating with a target price on the commodity exchange. At 10:18 AM today, MCX was trading at Rs 2473.40, up 2.31 per cent from the previous closing.
Gold prices extended gains on Wednesday (March 25) after snapping a nine-session losing streak on Tuesday. The rise was supported by weakness in the US dollar, which makes the yellow metal more attractive to foreign buyers, along with hopes of de-escalation in the US–Iran conflict.
Silver prices soared on the Multi-Commodity Exchange (MCX), rising around 5.5 per cent on Wednesday, driven by optimism over a potential de-escalation in US–Iran tensions. As of 9:45 am, MCX silver futures were up 5.6 per cent, or Rs 12,504, at Rs 2,36,445.
HDFC Securities target price on MCX
The brokerage firm has maintained its target price at Rs 2,950 for the commodity exchange.
Key takeaways from HDFC Securities’ coverage on MCX stock:
– Options premium ADTV rose to about Rs 106 billion in Q4.
– Bullion contribution about 57 per cent notional and 30 per cent premium ADTV.
– Options volumes CAGR seen 56 per cent FY25-FY28.
– Premium CAGR seen 42% over FY25 to FY28.
– Active UCCs rose 62 per cent YoY to 0.89 mn.
– Options premium ADTV up from Rs 71 billion in Q3.
Oil prices ease on de-escalation hopes
Oil prices slipped following updates regarding possible de-escalation in the West Asia conflict. Prices fell to near USD 95 after rising above USD 100 in the previous session.
Lower oil prices help ease inflation, which increases the likelihood of interest rate cuts, an environment that typically supports gold prices.
Analysts warn of continued weak trend
Despite the recent recovery, analysts caution that the rise may be temporary.
Echoing similar views, analyst Manoj Jain noted that gold and silver have rebounded from oversold levels and may continue to recover for another one to two sessions. However, he added that the short-term trend remains weak, and profit booking could emerge at higher levels.
Technical analyst Rakesh Khanna also believes that the downtrend in gold and silver remains intact.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
