In 2010, MMTC made its all time high at 1300. Since then the stock is in down trend. Since July 14, this stock is taking resistance at 59. Last week the stock has broken this resistance with huge volume and made a Bullish Khatana candle on weekly chart. The primary reasons I feel this is multi bagger because
A. price moved around 50% in a week. This shows some big investor has entered the stock.
B. on a longer time frame, around 9 years, this stock has made a text book rounding bottom pattern. The target for this pattern is usually 5X. So considering the current price, it can go up to 300 in next 2/3 years.
C. most of the government companies are now getting re-rated and this stock is no exception.
D. Anti dumping duty on China made this stock more favorable for investment.
Overall, in my opinion, this is worth of a trade. I kept a deep Stoploss of 40 which is around 40% below the CMP. However, if you consider my target price, the RR is 1:12.5 which is excellent. An INVESTOR who is willing to take this risk and can wait for 3 years or plus should enter the trade.
Do not buy the stock at one go. Rather accumulate this stock on each dip until it gives weekly closing above 72. Hence, we can average the stock at lower price and achieve a good night sleep too.
CMP - 61.6 (17/9/23)
T - 70,100,130 W
SL - 40 W
A. price moved around 50% in a week. This shows some big investor has entered the stock.
B. on a longer time frame, around 9 years, this stock has made a text book rounding bottom pattern. The target for this pattern is usually 5X. So considering the current price, it can go up to 300 in next 2/3 years.
C. most of the government companies are now getting re-rated and this stock is no exception.
D. Anti dumping duty on China made this stock more favorable for investment.
Overall, in my opinion, this is worth of a trade. I kept a deep Stoploss of 40 which is around 40% below the CMP. However, if you consider my target price, the RR is 1:12.5 which is excellent. An INVESTOR who is willing to take this risk and can wait for 3 years or plus should enter the trade.
Do not buy the stock at one go. Rather accumulate this stock on each dip until it gives weekly closing above 72. Hence, we can average the stock at lower price and achieve a good night sleep too.
CMP - 61.6 (17/9/23)
T - 70,100,130 W
SL - 40 W