MCX is still a hold..

Couple of months back I had written about MCX being a good contra buy (https://writingoptions.wordpress.com/2014/05/09/mcx-good-contra-buy/). Friday closing price of MCX on NSE was 670.

Is it time to book profit ? I don’t think so and I am still holding every single share in my investment book. I had bought few shares in trading book around 520-550 which I sold at current price. Other way round, Is MCX a buy around current prices ? I would hesitate to buy at current prices and would prefer to do so on declines. Although it’s a different question, whether one would get a sharp decline now. There was a news report recently that Kotak might prefer to buy MCX shares from open market rather than buying stake from FT. I don’t know if it is true or not, but if it is than it might provide further support to MCX share price. Corporation bank has also completely sold its MCX stake. It held 1.77 percent stake as on 31st March, 2014. Along with Corporation Bank one more public sector bank, Bank of Baroda has also sold its entire stake in MCX.

There is still no news on the stake sale of FT’s 26 percent stake. I hope clarity emerges on this front shortly and it gets done quickly. New promoter might be able to focus on improving trading volumes at MCX. But as I said in my last post on MCX, biggest trigger for MCX remains amendment to FCRA.

Disclaimer: These are my personal views and you should do your own due diligence before acting on anything written in this blog. Please take reasonable care while trading in options, especially while selling. I am not advising anyone to sell or buy options. My purpose of writing this blog is to highlight my trading strategies


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