Praveen's Information Attic (Obervations, Lessons, Thoughts)

Investment Learning
33

Hello Folks
I’ve posted about Averaging up in MCX on 19th Nov. I’m still going to ride the trend.
Today I’d like to make a comparison between two Cos in both technicals (mostly but some Funda as well)
Let’s look at charts of Angel One and MCX over past few days

Angel One:

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  1. Over Last 8 days, I see there are 2 candles (marked with arrows) where I could see 2 candles with wick on top, which indicates that the price rise did not sustain
  2. Even though yesterday there was big green candle (on Monthly business update release), but there’s no follow up and today the stock gave away some of the returns
  3. By looking at the Volumes, we can see that the Green candles have higher volumes, which is a positive sign technically
  4. On Funda side, the co. is trading at PE of ~25.3. The stock made a peak in Apr 2022 at 26.9 PE. Which means that the co is close to peak valuation it achieved last year
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MCX:

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  1. As per my interpretation, the stock is still not seeing much pressure in continuing the uptrend even though the momentum is not as much as it was 2 months ago
  2. On Funda side, the stock is trading at 40x P/E FY25 estiamted earning (assuming 424 cr PAT for FY25). Though it looks over valued, but considering that it’s a monopoly business it may not be the peak (not undervalued either). Also CAMS and CDSL trade at >45x, 62x TTM P/E and have infirior growth compared to MCX

So, from my Funda view Angel one is close to it’s peak and no opinion on MCX funda wise.
Coming to Technical view Both are making new highs. But Angel one shows signs of exhaustion but not MCX.
MCX is clearly stronger on chart compared to Angel One. My view is that MCX is stronger and should outperform over next few months.

Why and What I’m doing:

  1. I’m writing down my thoughts in Technofunda and would assess in future how my views played out. This would give me confidence and also help learn few things
  2. SInce I’m a beginner in TechnoFunda, comparing 2 stocks from my tracking universe (also in PF) is a better exercise than comparing with TechnoFunda picks of other people.

Please feel free to share views on how you’d interpret these charts and earnings. Let’s learn from each other

Disc: No reco to buy or sell. Currently holding both Angel One and MCX

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