BSE Share Price Spikes, But A Struggle Awaits At This Key Psychological Barrier

Summary:
• The BSE share price has risen by more than 12 percent in the last month, but could an encounter with the Rs 2,800 mark terminate rise?

BSE share price on Wednesday rose to the highest level since mid-June, gaining 3.5 percent in the intraday session to trade at Rs 2,885. The stock has been on a steady uptrend since late July, and has risen by 12.9 percent in the last month. In addition, its gains year-to-date stand at 25.1 percent, and has risen by 206.5 percent in the last 52-weeks.

In comparison, the Nifty Midcap 100 index, to which the stock belongs, has registered 1.9 percent growth in the last month and is at +28 percent YTD. These figures prove the strong underlying bullishness around the BSE (NSE: BSE) stock, cushioning it from potential profit-taking pressure following its recent exploits.

The surge in the BSE share price came after the company reported a 158.33 percent growth in total income to Rs 670.64 crore in its first quarter FY 2025 incomes YoY announced on August 8. This underlines a healthy balance sheet that could ensure steady growth. At its current price, BSE share price is above key moving averages, including the 20, 50, 100 and 200 Simple Moving Averages (SMA) on the daily chart.

BSE share price momentum

The upward momentum prevails as seen on the 4-hour chart below, where the BSE share price is above the Volume Weighted Moving Average, whose reading is currently at Rs 2,703.03. However, the stock has been rejected at the psychological barrier at Rs 2,800, a level last crossed in mid-May. Notice how a downtrend set it after the short-lived crossover at that time. That said, the RSI reading is at 66, signaling an underlying bullish momentum that could break above that mark.

Key support and resistance levels

The chart below calls for further upside by BSE above the pivot mark at 2,753.80. Based on the current momentum, we will likely see the first resistance at 2,800. However, if the buyers extend their control, they will build a stronger momentum that could break above that barrier and potentially test 2,850.00.

Conversely, moving below 2,753.80 will signal a bearish takeover, with the first support likely to be at 2,716.10 That mark could, however, be broken if the downward momentum strengthens further, in which case the upside narrative will be invalid. Also, it could result in further decline of the stock price to test 2,673.55.