The stock had gained nearly 23% in the last three sessions, driven by optimism surrounding the Rs 7,280-crore government incentive scheme aimed at boosting India’s rare earth magnet manufacturing capacity.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the scheme to reduce India’s dependence on China and increase domestic mineral production. GMDC, a key player in bauxite, rare earth minerals, and lithium exploration, was seen as a major beneficiary.

Technical placement of GMDC shares

The pullback also comes amid signs of technical resistance, with GMDC now trading below key short-term exponential moving averages (EMAs), according to Trendlyne data.

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The 10-day EMA stands at Rs 528.6, and the 12-day EMA at Rs 532.5, both still below today’s low, suggesting limited immediate downside support.

The 20-day EMA, however, is Rs 545.3, above the current price, indicating potential resistance from recent highs.

Meanwhile, longer-term EMAs remain supportive, with the 100-day EMA at Rs 510.5 and the 200-day EMA at Rs 454.6, indicating bullish undertones in the broader trend.

Profit booking after Cabinet boost

The rally earlier in the week followed news that India would establish 6,000 metric tons per annum of rare earth magnet production capacity over the next three years. The announcement triggered a buying spree in GMDC, given its exposure to critical minerals and strategic importance in the supply chain.

However, with the short-term gains largely factored in, investors appeared to book profits ahead of the weekend, triggering Friday’s pullback.

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