Diginex Limited (NASDAQ:DGNX) witnessed a robust rise in its share price on Friday after unveiling a Joint Venture Framework Agreement designed to bolster sustainability and decarbonization initiatives within Brazil. This strategic partnership involves BGlobal (Brazil, Brand & Business) and the State of Mato Grosso and seeks to develop a comprehensive digital infrastructure platform that will initially address the beef sector's environmental impact with prospective expansion to additional industries.
The planned platform aims to provide standardized and auditable sustainability and emissions data aligned with international standards. One of the key features includes the implementation of a “Digital Green Passport,” intended to facilitate improved access to export markets by validating environmentally responsible practices. The system will also produce data compliant with measurement, reporting, and verification (MRV) protocols, supporting credible carbon credit and nature-based initiatives.
This collaborative initiative merges Diginex’s and its subsidiary PlanA.earth’s expertise in ESG (Environmental, Social, and Governance) reporting and emissions accounting with BGlobal’s strong local stakeholder engagement capabilities. Furthermore, it complements Mato Grosso’s ongoing “Passaporte Verde” program, which promotes sustainable agricultural practices in one of the world’s most significant farming regions. Mato Grosso spans more than 900,000 square kilometers, accounting for about 60% of Brazil’s territory, underscoring the venture’s substantial geographic and economic footprint.
The Brazilian market for decarbonization services is projected to grow from an estimated $43.1 billion in 2024 to $76.8 billion by 2030, highlighting the strategic importance and potential scale of this initiative within the country’s evolving sustainability landscape.
Despite the positive news, technical analysis of Diginex’s stock reveals bearish indicators in the short to medium term. The shares are currently trading 57.7% below the 20-day simple moving average (SMA) and 86.2% below the 100-day SMA, suggesting sustained downward pressure. Over the past year, the stock has declined by 15.30%, remaining closer to its low than its 52-week high, reflecting broader challenges facing the company.
However, certain momentum indicators suggest possible near-term rebounds. The Relative Strength Index (RSI) is at 18.85, indicating the stock is oversold, while the Moving Average Convergence Divergence (MACD) is positioned above its signal line, signaling a potential bullish reversal. The juxtaposition of these technical signals points to mixed investor sentiment with potential bullish momentum emerging despite prevailing bearish trends.
Key technical resistance is currently identified at $3.50, while support is observed around the $0.50 mark. Market watchers are also anticipating Diginex’s upcoming earnings report, scheduled for July 11, 2026. Analysts estimate earnings per share (EPS) at $0.07, a metric closely monitored for indications of financial performance and operational momentum.
Reflecting the market’s positive reaction to recent developments, Diginex shares surged by 32.59% to $1.79 in premarket trading on Friday, based on data from Benzinga Pro. This significant uptick contrasts with overall declines in the wider market indices, such as the Russell 2000 and the S&P 500, which fell 0.37% and 0.19% respectively, suggesting that Diginex’s price move is predominantly driven by company-specific news rather than sector or market-wide factors.