Sell MOTHERSON SUMI SYSTEMS
|Sell Range||92 – 87|
|Target||80 – 76|
|Duration||10 – 12 Trading Days|
|Potential Returns^||11 – 15%|
|CP#||Idea||Sell Range||Target||StopLoss*||Duration||Potential Returns^|
|89.75||SELL||92 – 87||80 – 76||96||10 – 12 Trading Days||11 – 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.
|Sectoral Index||Nifty Auto|
MOTHERSON SUMI TECHNICAL ANALYSIS (WEEKLY)
- 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)
- 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.