PG Electroplast share price jumps 6% on these two triggers. Do you own?

PG Electroplast share price surged more than 6% due to two factors during Wednesday's trading session. The shares experienced an upward trend after the company finalised a definitive agreement with PAX India, a subsidiary of PAX Global Technology Limited, for the production of Point-of-Sale (POS) devices in India. The consumer durables manufacturer’s stock also exited the Futures & Options (F&O) ban.

Experts indicate that exiting the F&O ban allows for the formation of new positions in the stock, which cannot occur while it is under a ban.

As per reports, a stock is removed from the F&O ban once its open positions drop below 80% of the market-wide position limit (MWPL), which signifies the highest allowable number of open derivative contracts that all market participants can maintain for a specific stock.

Talking about the strategic manufacturing partnership, as part of this deal, the company will produce PAX-branded POS devices at its current facilities, with production expected to commence by the end of the year. This collaboration signifies the firm’s foray into the payments and financial technology hardware market, broadening its scope from consumer electronics to high-growth digital infrastructure solutions.

The partnership enhances PAX India’s leading status by facilitating increased localisation, efficiency, and scalability. It further bolsters the Government of India’s initiatives, “Make in India” and “Digital India,” by guaranteeing that high-quality POS devices are produced domestically to satisfy the country's rising need for secure and dependable electronic payment solutions.

PG Electroplast share price today opened at ₹541.95 apiece on the BSE, the stock touched an intraday high of ₹573.80 per share, and an intraday low of ₹534.25 apiece.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, PG Electroplast share price is showing strength today, up around 4% on robust volumes. The bounce may extend toward the 20 EMA near 620, given the oversold conditions. However, after significant pressure over the past two weeks, the stock could face resistance at higher levels. On the downside, a bullish gap around 500 may continue to provide support.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories