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Motherson Sumi Technical Analysis: Sell | Target Rs 80 | Arijit Banerjee

OUR RECOMMENDATION

  Sell    MOTHERSON SUMI SYSTEMS  

CP#89.75
IdeaSELL
Sell Range92 – 87
Target80 – 76
StopLoss*96
Duration10 – 12 Trading Days
Potential Returns^11 – 15%
CP#IdeaSell RangeTargetStopLoss*DurationPotential Returns^
89.75SELL92 – 8780 – 769610 – 12 Trading Days11 – 15%

# CP – closing price on March 11, 2020
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 85.
^ Potential returns are calculated based on the median of sell range.

COMPANY OVERVIEW - MOTHERSON SUMI

Motherson Sumi Systems Limited (MOTHERSUMI) is the leading, specialized automotive component and original equipment manufacturing company having a diverse global customer base in India, North America, Europe, Australia, Asia Pacific and Middle East. The company offers wiring harnesses, exterior and interior, camera-based vision systems, polymer products and a range of applications including automotive, medical, home appliances etc. In Q3FY20, the company’s net income was decreased by 5% to Rs. 15,661.09 crore and Net Profit dropped by 39.39% YOY to Rs. 318.51 crore.

Stock Data
NSE CodeMOTHERSUMI
Sectoral IndexNifty Auto
52W High175.6
52W Low88.3
Face Value1
Relative Performance_Motherson Sumi vs Nifty Auto Index

MOTHERSON SUMI TECHNICAL ANALYSIS (WEEKLY)

Motherson Sumi (MOTHERSUMI) Technical Analysis - Weekly Chart
Motherson Sumi Technical Analysis - Weekly Chart
  • Bearish head and shoulder formation since July 2014 onward with the neckline of the said pattern seems to exist around 92.
  • Motherson Sumi has given breakout below the right shoulder on weekly chart with incremental volumes

MOTHERSON SUMI TECHNICAL ANALYSIS (DAILY)

Motherson Sumi (MOTHERSUMI) Technical Analysis - Daily Chart
Motherson Sumi Technical Analysis - Daily Chart
  • Looking at the daily chart, Motherson Sumi Share price has seen a spectacular fall by moving in a strong downtrend indicating negative bias.
  • ADX is above 70 confirms selling momentum and – DI crossing above 30 indicates probable further fall. Being a lagging indicator, it confirms once the direction is clearly established.
  • RSI turned bearish on the daily chart.

MOTHERSON SUMI SHARE PRICE LIVE UPDATE - POSITION & ACTIVITIES

Sell Motherson Sumi | Expected Profit 11-15% | Goodluck Capital by GoodluckCapital on TradingView

Sell Motherson Sumi | Expected Profit 11-15% | Goodluck Capital by GoodluckCapital on TradingView

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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