MSTC hits record high; rises 29% in four days

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MSTC surged 4.74% to Rs 230.80, rising for the fourth consecutive trading session.

Shares of MSTC rallied 29.1% in four trading sessions from its previous closing low of Rs 178.75 on 11 January 2021. The counter hit a record high of Rs 237.50 in intraday today. The counter is up nearly 218% from its 52-week low of Rs 72.60 hit on 30 March 2020.

Shares saw demand after the media reported that the Union Cabinet will soon take a call on shutting down Scooter India. Subsequently, MSTC, will be tasked with the responsibility to sell the assets of Scooters India.

On the technical front, the stock's RSI (relative strength index) stood at 83.137. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 163.32 and 159.45 respectively. These levels will act as crucial support zones in near term.

MSTC undertakes marketing of ferrous and miscellaneous scrap arising from integrated steel plants, engineering companies, refineries, power plants, coal and transport sector, defence and other government departments / private sector organisations in the domestic market.

On a consolidated basis, the company's net profit declined 1.9% to Rs 28.76 crore on a 21.6% fall in net sales to Rs 209.45 crore in Q2 September 2020 over Q2 September 2019.

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