BSE, MCX, CDSL: How to trade exchange-related stocks? Analyst view here

Hitesh Rathi, Technical Analyst at Angel One reckons that BSE and MCX have witnessed a notable correction in recent months, and the charts now hint at presence of strong support at these counters.

Stock prices of BSE and Multi Commodity Exchange of India (MCX) have declined around 27 per cent each from their respective highs in May 2026. BSE shares fell to a four-month low of ₹3,325 on Tuesday after Jefferies and Nuvama downgraded the stock, citing, among other factors, risks related to the Closing Auction Session (CAS).  Nuvama downgraded BSE to 'Hold' with a target price of ₹3,240 from its earlier projection of ₹4,090. It said CAS has reset index option volumes to a new low while the Reserve Bank of India's (RBI's) bank guarantee norms will start biting from Q4FY27.  Similarly, Jefferies gave an 'underperform' rating with a target price of ₹2,940 on the back of risks arising from an increase in the Securities Transaction Tax (STT), RBI bank guarantee norms, and the decline in volumes following the implementation of CAS. READ MORE  On Wednesday, as of 1 PM, BSE traded with a gain of 2 per cent at ₹3,370. MCX was down 2.5 per cent at ₹2,983, and CDSL traded on a flat note.  Given this background, here's a technical outlook on exchange-related stocks by Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One.  BSE  Current Market Price: ₹3,370 

 

 

  BSE stock has been under pressure since May this year, resulting in a significant deterioration in its overall technical structure, says Hitesh Rathi of Angel One.  The analyst believes that the recent price breakdown below ₹3,450, has further accelerated downward pressure on the stock, opening price targets up to ₹3,150 levels.  "While stock remains in an established downtrend, with no signs of reversal yet visible on the charts. It is important to note the strong support in the ₹3,150-3,100 band. This zone previously acted as resistance, and now likely to act as a support, following the principle of polarity," explains Rathi.  Given the significance of this support zone, the analyst recommends ‘accumulation on dips’ as a trading strategy as long as the support band hold.  Multi Commodity Exchange of India (MCX)  Current Market Price: ₹2,964 

 

  Following a sharp correction, the technical structure of MCX appears to be showing early signs of a potential trend reversal, notes Rathi.  The analyst reckons that MCX established a strong 'Multi-Brick Support' in the ₹2,650–2600 band on its 'Renko' charts. This support formation, he adds has been followed by a 'W-pattern' breakout on the Daily 1% Renko chart, providing further confirmation of strong demand at lower levels.  Further, a bullish crossover of the 20-brick Exponential Moving Average (EMA) above the 40-brick EMA further reinforces the improving momentum and reversal setup, adds Rathi.  "The ₹2,650–2,600 zone gains additional significance as it has now transitioned from a prior resistance area into a potential support zone," the analyst explains.  Going ahead, the analyst says a successful retest of the ₹2,650–2,600 band, followed by the formation of a higher high, would provide stronger confirmation of the trend reversal.  Central Depository Services (India) (CDSL)  Current Market Price: ₹1,335 

 

  CDSL has been undergoing a prolonged phase of consolidation, notes Rathi. However, he believes that the technical setup is now beginning to improve, with the stock appearing poised to scale higher levels.  "The stock triggered an Inverse Head & Shoulders breakout on its higher-timeframe Daily 3% Renko chart, following the establishment of strong support in the ₹1,150–1,130 band," explains the analyst.  The formation of a higher-high and higher-low reinforces an improving trend and points towards a shift in control from sellers to buyers. Given the positive technical structure, ongoing dips can be utilised as an opportunity to enter the stock at relatively favourable levels, says Rathi.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.  Analyst Disclaimer: I/We am/are a [SEBI Registered Research Analyst - INH000000164]. The views expressed are my personal views and not investment advice. I/my associates/relatives do not have any financial interest or hold positions in the stocks/derivatives/commodities being discussed. There are no conflicts of interest. However, some of our clients may have positions in them. Investment in securities market are subject to market risks. Past performance is not indicative of future results.