Domestic brokerage firm Ventura Securities has suggest to short BSE Ltd in its recent note. However, the stock has seen some correction in the stock recently, falling nearly 10 per cent.
But the broking firm sees more downside in the stock in the coming session. It has cited five techno-funda reasons for its call.
Shares of BSE had traded ex-bonus in 2:1 ratio in May 2025. The stock had scaled its 52-week high at Rs 3,030 on Tuesday, June 10 and settled at Rs 2,722 on Friday, with a total market capitalization of Rs 1.10 lakh crore. Despite this correction, the stock has tripled investors’ wealth in the last one year.
Ventura Securities noted that option premium volumes for the week stood at Rs 10,824 crore, significantly lower than the April-May average of Rs 15,865 crore. The decline appears to be linked to SEBI’s ongoing crackdown on hedge funds, which may have impacted speculative and high-volume trading activity.
Here are the five reasons cited by Ventura Securities explaining its rationale for the call:
1. Post announcement of investigation on Jane Street’s last 3 years derivatives trades by SEBI, BSE has been placed under ASM framework which has resulted in 4 per cent fall in the stock after 45 days of continuous rally.
2. Derivatives premium volumes across exchanges have witnessed significant drop. As in case of BSE’s derivatives premium volumes, significantly lower than the April-May average.
3. This has impacted speculative and high-volume trading activity on various platforms including BSE. We can expect BSE to continue its fall amid inclusion in ASM framework.
4. As per charts, stock has been rising in an upward channel which was overextended above 1.618 Fibonacci retracement level. Declining volumes indicate that the overextension in uptrend is not sustainable and can witness correction.
5. Fundamentally, even at 1 year forward P/E of 71.9 times BSE will trade at Rs 2,373 which is 12.8 per cent below its close on Friday. Extended rally is due for correction.
Price has been rallying in rising parallel channel and there is an over extension above 1.618 Fibonacci retracement which is not sustainable due to declining volume. This builds the case for a tactical short. The stock is expected to test 1.618 Fibonacci retracement level of Rs 2512 which is the near-term target. Level of Rs 3,045 will act as the stop loss, Ventura Securities added.
BSE reported a 362 per cent rise in its net profit on a year-on-year (YoY) basis to Rs 494 crore. India’s oldest exchange clocked a revenue from operations at Rs 847 crore, up 75 per cent YoY. Its operating Ebitda (including core SGF) for the quarter more than tripled to Rs 594 crore, while Ebitda margins stood at 70 per cent.