MMYT Surges 5.07% on Intraday Rally: What's Fueling the Momentum?

Summary
• Makemytrip (MMYT) surges 5.07% to 99.11, breaking above its 52-week low of 81.84
• Intraday range spans 94.625 to 100.31, with 911,626 shares traded
• Sector leader Expedia (EXPE) gains 0.76%, hinting at travel sector tailwinds

Today’s 5.07% rally in Makemytrip has ignited speculation about catalysts behind the sharp reversal. The stock’s surge from 94.625 to 100.31 suggests short-term momentum, while the travel sector’s muted gains (led by EXPE) indicate broader market caution. With options volume spiking in the 90-strike calls, traders are positioning for a potential breakout.

Short-Term Bullish Momentum Drives MMYT Higher Amid Oversold Conditions
The 5.07% intraday surge in Makemytrip is driven by a combination of technical exhaustion and speculative options activity. The RSI at 30.84 signals oversold conditions, triggering algorithmic and discretionary buying. The MACD (-0.58) remains bearish, but the positive histogram (-0.0166) hints at a potential reversal. Price action near the Bollinger Upper Band (103.54) suggests volatility is compressing, while the 90-strike call options (MMYT20250919C90) show 59.18% price change and 8.55% leverage ratio, indicating aggressive bullish positioning. This suggests short-term traders are capitalizing on a rebound from multi-year lows.

Travel Sector Gains Momentum as EXPE Leads with 0.76% Rally
The broader travel sector, led by Expedia’s 0.76% gain, shows mixed momentum. Makemytrip’s 5.07% rally outperforms the sector, suggesting idiosyncratic factors are at play. While EXPE benefits from general travel demand, MMYT’s move appears tied to technical triggers and options-driven speculation. The sector’s 0.76% gain underscores that macroeconomic risks remain, but MMYT’s volatility highlights divergent investor sentiment.

Options Playbook: Leveraging MMYT's Volatility with Strategic Contracts
• RSI: 30.84 (oversold)
• MACD: -0.58 (bearish), Signal Line: -0.568 (bearish), Histogram: -0.0166 (positive divergence)
• Bollinger Bands: 94.625 (lower), 96.429 (middle), 103.536 (upper)
• 200D MA: 102.83 (resistance)

Key levels to watch: 94.625 (support), 96.429 (middle band), and 102.83 (200D MA). The RSI’s oversold reading and positive MACD divergence suggest a short-term bounce is likely. Aggressive bulls should target a break above 100.31 (intraday high) for confirmation.

Top Options Contracts:
• MMYT20250919C90 (Call):
- Strike: 90, Expiry: 2025-09-19
- IV: 45.54% (moderate), Leverage: 8.55%
- Delta: 0.7867 (high), Theta: -0.1367 (high decay), Gamma: 0.0205 (moderate)
- Turnover: 29,849 (high liquidity)
- Why: High leverage and liquidity make this ideal for a breakout trade. A 5% price move to 104.07 would yield a 15.63% payoff (max(0, 104.07 - 90)).
• MMYT20250919C100 (Call):
- Strike: 100, Expiry: 2025-09-19
- IV: 36.87% (moderate), Leverage: 22.09%
- Delta: 0.5166 (moderate), Theta: -0.1195 (high decay), Gamma: 0.0346 (high)
- Turnover: 6,010 (high liquidity)
- Why: High gamma and leverage amplify gains if the stock breaks above 100.31. A 5% move to 104.07 would yield a 4.07% payoff (max(0, 104.07 - 100)).

Hook: Aggressive bulls may consider MMYT20250919C90 for a breakout above 90, while MMYT20250919C100 offers leveraged exposure to a 100.31 break.

Backtest Makemytrip Stock Performance
The backtest of MMYT's performance after a 5% intraday increase shows favorable short-to-medium-term gains, highlighting the stock's potential for positive movement following a strong initial trigger. The 3-Day win rate is 57.03%, the 10-Day win rate is 57.35%, and the 30-Day win rate is 67.85%, indicating that MMYT tends to experience positive returns in the immediate aftermath of a significant intraday surge. The maximum return observed was 11.16% over 30 days, suggesting that there is potential for substantial gains if the momentum from the initial surge is sustained.

Act Now: MMYT's Bullish Setup and Sector Leadership Signal Strong Near-Term Potential
The 5.07% rally in Makemytrip is a high-conviction trade for short-term bulls, supported by oversold conditions and options-driven momentum. While the 200D MA at 102.83 remains a critical resistance, a break above 100.31 would validate the reversal. Sector leader Expedia’s 0.76% gain suggests travel demand is holding, but MMYT’s volatility demands tighter risk management. Watch for a close above 100.31 or a breakdown below 94.625 to confirm direction.