BSE shares rally: Gain 15% in a month as regulatory fears ease; top things investors should watch out for
Amid speculation that the Securities and Exchange Board of India (Sebi) might scrap or modify the weekly options expiry- a move that could hurt derivatives volumes and exchange revenues- fresh reports suggest no immediate changes are planned and have encouraged traders to bet on stability, fueling renewed buying in market infrastructure stocks like BSE and Angel One, according to an ET report.Harshal Dasani, Business Head at INVasset PMS, said, “Based on current earnings visibility and steady derivative turnover, my near-term target range is Rs 2,650–2,750.” He highlighted that the stock “remains supported by strong operational cash flows, zero debt, and healthy return ratios.”Dasani added, as quoted by ET, “BSE’s fundamentals remain robust, backed by a debt-free balance sheet and strong return on equity.” He expects that sustained traction in F&O and transaction revenue could push the stock toward Rs 2,800 in the medium term, while cautioning that “the sustainability of the current rally will depend on continued growth in derivative contracts and stable regulatory clarity.”Technical indicators show positive momentumBSE is trading above all eight major simple moving averages, signaling bullish momentum across timeframes.
The Relative Strength Index (RSI) stands at 66.9, while the MACD remains above its signal line, reinforcing the positive trend.Kunal V Parar, VP of Technical Research and Algo at Choice Broking, said, “The stock has been trading above its 100-day Moving Average for the past week, indicating a positive trend in the counter.
Furthermore, it has recently taken support near its 200-day Moving Average, suggesting a strong rebound from lower levels.” He noted that the “Rs 2000 zone, which earlier acted as a key resistance, has now turned into a strong support level,” and sees a “potential upside move towards Rs 2,690-3,000, with a strict stop loss at Rs 2,250.”Exchange stocks like BSE have also benefited from the broader rally in India’s capital markets.“Exchange stocks like BSE are closely tied to domestic trading activity, F&O participation, and FII flows,” Dasani said.
“Rising retail participation and deepening derivatives markets provide a structural tailwind.”For now, BSE’s share recovery seems more like a steady rebound than a speculative spike, supported by easing regulatory concerns and strong fundamentals.
Investors are keeping a close eye on whether the stock can maintain its momentum as it approaches a crucial resistance level amid record-high markets.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own.
These opinions do not represent the views of The Times of India)
