The brokerage firm 5Paisa Capital Ltd.’s positive Q3 FY23 earnings report (NS: PAIS), investors have turned their attention to stock brokerage firms. In the reported quarter, the business made a profit of INR 11.01 crores, which was 80% of its total FY22 profit of INR 13.74 crores. Its average daily turnover reached its highest level ever, reaching INR 2,05,904 crores. In point of fact, Zerodha, the largest broker in the nation in terms of the number of clients it serves, also reported a 87 percent year-over-year increase in FY22 profit to INR 2,094 crores.
The broking industry is undoubtedly making progress, particularly since the Covid-19 pandemic struck the United States, and it would be fascinating to observe their performance during the current result season. Motilal Oswal Financial Services Limited, a stock from the same industry that is currently gaining traction, MOFS), which has a market capitalization of 10,558 crore Indian Rupees.
The share price of Motilal Oswal Financial Services jumped 3.5 percent to INR 739, retracing a little from the day’s high of INR 750, as the Nifty 50 recovered from its lows and is currently trading 0.62 percent higher at 17,968 at 3:02 PM IST. The stock was prevented from rising for a number of sessions by a significant obstacle between INR 720 and INR 725, which was cleared with the assistance of the rally. In recent times, there have been several attempts to cross this supply zone, but each time the bears pounced hard and turned the stock’s course toward the south.
It seems like this time is different. Since today is Friday, the stock has not only exceeded this level but is also trading comfortably above it, increasing the likelihood of a profitable weekly close. The Motilal Oswal Financial Services shares’ upward trend could be reversed by a strong close above a significant resistance.
There are no complaints regarding volume. Exchange-traded volume has increased to over 431.8K shares as of this writing, 260% more than the 10-day average of 117.4K shares. The next resistance zone is located somewhat near the CMP, around INR 760. However, if this level is broken, the rally could reach around INR 820.
Around INR 700, where the stock has bounced back multiple times, there is good support. The uptrend will continue as long as this support remains.
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