The outlook for the stock of Motherson Sumi Systems is bullish. The stock rose 2.5 per cent on Tuesday breaking above a key resistance level of ₹340. The stock has closed just above ₹340 and this level may now serve as a good near-term support. The next key support is at ₹337. The downside is expected to be limited to ₹337 if the stock breaks below ₹340 in the near-term.
The strong surge on Tuesday confirms the resumption of the uptrend that has been in place since late August. It also keeps the long-term uptrend intact. A revisit of the previous high of ₹345 is likely in the coming days. The possibility is high of the stock breaking above this level and surging to record highs. Such a break can take the stock higher to ₹355 or ₹360 in the coming days. Traders with a short-term perspective can go long. Stop-loss can be placed at ₹334 for the target of ₹355. Accumulate longs on dips near ₹339. Revise the stop-loss higher to ₹345 as soon as the stock moves up to ₹349.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.