On Friday, the shares of Multi Commodity Exchange of India surged as much as 5 per cent intraday as the Cabinet approved the Forward Contract Regulation Act (Amendment) Bill the previous day. The stock's 7 per cent rally in the last two sessions has helped it recover its initial loss and finish the week with a gain of 4.2 per cent. There has been an increase in volume over past two sessions.
The stock has been on a medium-term uptrend from its 52-week low registered at Rs 838 on May 31. It decisively broke through a key resistance at Rs 1,200 on September 13 by jumping 5 per cent with good volume. Moreover, its recent rally has breached the stock's important resistance at Rs 1,300. It is hovering well above both 21- and 50-day moving averages. The daily relative strength index has re-entered the bullish zone from the neutral region and weekly RSI has entered the bullish zone for the first time from the neutral region.
The daily moving average convergence divergence indicator is featuring in the positive territory implying upward momentum. The stock can encounter resistance between Rs 1,390 and Rs 1,400. Strong rally above this band will push the stock higher to Rs 1,450 and then to the psychological resistance at Rs 1,500 in the medium-term. The stock has immediate support at Rs 1,250. An emphatic decline below this level will pull the stock down to Rs 1,200 and then to Rs 1,100 in the medium-term.
Essar Oil (Rs 60.5)
This stock zoomed 15.5 per cent with extraordinary volume in last one hour trade on Friday, taking the total weekly gain to 19 per cent. After taking support in the band between Rs 45 and Rs 46 in early September, the stock started moving higher. Since then, it has been on a short-term uptrend.
Last week's spike has emphatically penetrated its 200-day moving average as well as another important resistance. The stock currently faces resistance at Rs 63. Only a strong rally above this resistance will pave way for an up move to Rs 68 and Rs 70 in the forthcoming weeks. Next important resistances are positioned at Rs 74 and Rs 80. Failure to rally above Rs 63 will pull the stock down to Rs 55. Decline below this support will drag the stock down to Rs 50 or even to Rs 45 in the medium-term.