Augmont Enterprises share price reached to a record high of ₹1,062.20, hitting 10% upper circuit for second session straight on Tuesday, 29 September, after the company was empanelled by the National Stock Exchange of India (NSE) as a key partner to promote Electronic Gold Receipts (EGRs).
The stock has witnessed a significant rally of over 24.47% in a week and has generated 17% returns since its listing on 31 August.
What’s behind the rally?
In an exchange filing dated 26 September, Augmont Enterprises said that this is strategic partnership designed to simplify the process of EGR creation and extinguishment, and to promote trading in EGRs, further deepening India’s gold ecosystem.
Under the partnership, Augmont will leverage its expertise across the gold value chain to strengthen the digital infrastructure for EGRs, while providing technical and on-ground support for the development of the product. The collaboration is aimed at enabling the seamless conversion of physical gold into EGRs and the reconversion of EGRs into physical gold within a regulated framework.
EGRs are dematerialised securities representing ownership of physical gold that is securely stored in SEBI-accredited vaults and held electronically through depositories. Each EGR is fully backed by physical gold and can be traded on the exchange, integrating gold more closely with the formal financial system.
Through the partnership, NSE seeks to build a stronger and more transparent gold trading ecosystem, supporting efficient price discovery, broader market participation and greater trust among jewellers, refiners, traders and institutional investors.
“The empanelment of Augmont marks an important step in building a deep and vibrant ecosystem for Electronic Gold Receipts. By combining NSE’s robust technology and liquidity framework with Augmont’s rich experience and on-the-ground presence across the gold value chain, we are simplifying the creation and extinguishment of EGRs and making gold investment more accessible to investors across the nation. We believe this partnership will foster greater participation in EGRs and further position gold as a modern, integrated asset class within our capital markets,” said Sriram Krishnan, Chief Business Development Officer, NSE.
EGRs enable investors to hold gold electronically with assured quality and easy conversion between physical and digital forms. They also allow participation in the gold market in smaller denominations, offering greater liquidity and flexibility similar to other financial assets held in demat accounts.
What should investors do?
According to Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, Augmont Enterprises has shown strong buying momentum after rebounding from recent lows, and the stock could continue to remain positive if it sustains above the ₹980 level.
“Investors holding the stock can maintain a stop-loss at ₹980 and hold for targets of ₹1,090, ₹1,120 and ₹1,150-plus. Sustaining the momentum above these levels could further strengthen the bullish setup,” he added.
On the technical outlook, Gaurav Garg, Head – Research, Lemonn, the stock broke out of this pattern in Monday’s session, surging past the channel’s upper trendline around ₹870–875 and closing at ₹965.65 on the back of a strong bullish candle, a move that marks a trend reversal from bearish to bullish.
“The momentum carried into Tuesday’s trade, with the stock opening with a gap-up at ₹1,022 and swiftly hitting its 10% upper circuit of ₹1,062.20, taking out the listing-day peak to scale a fresh record high. With no selling pressure seen after the gap-up and no overhead supply at current levels, the stock faces resistance at ₹1,100 and ₹1,150. On the downside, the former listing high of ₹1,020 is expected to act as immediate support, followed by ₹966, which marks Monday’s close and the unfilled gap, while the breakout zone of ₹870–880 remains crucial for the uptrend to sustain. Existing shareholders may stay invested with a trailing stop-loss below ₹965, whereas new investors are advised not to chase the stock at the upper circuit and instead consider accumulating on dips towards the ₹1,000–1,020 range,” Garg added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
