Technical Analysis

Motherson Sumi Systems (₹114.6): Sell

Yoganand D BL Research Bureau | Updated on February 24, 2020 Published on February 25, 2020

Investors with a short-term perspective can sell the stock of Motherson Sumi Systems at current levels.

On Monday, breaking below a key support at ₹122 as well as the 200-DMA line at around ₹120, the stock tumbled 6.7 per cent with good volume. This fall has strengthened the short-term downtrend that has been in place since encountering a key resistance at ₹150 in January.

While trending down, the stock had breached a vital support at ₹135 which later on capped the upside. The stock currently trades well below its 21- and 50-DMAs.

The daily relative strength index features in the bearish zone and the weekly RSI is on the brink of entering the bearish zone from the neutral region. Moreover, the daily and the weekly price rate of change indicators are hovering in the negative terrain indicating selling interest.

Overall, the short-term outlook is bearish for Motherson Sumi Systems. The stock has the potential to trend downwards and reach the price targets of ₹110 and ₹107 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹117.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on February 25, 2020
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