Samvardhana Motherson International Ltd Stock Forecast

Green day on Tuesday for Samvardhana Motherson International Ltd
(Updated on Jun 25, 2024)

MOTHERSON.BO Signals & Forecast

The Samvardhana Motherson International Ltd stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹184.48 and ₹150.18. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, June 04, 2024, and so far it has risen 35.88%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

Support, Risk & Stop-loss for Samvardhana Motherson International Ltd stock

On the downside, the stock finds support just below today's level from accumulated volume at ₹164.60 and ₹151.65. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Samvardhana Motherson International Ltd finds support just below today's level at ₹164.60. If this is broken, then the next support from accumulated volume will be at ₹151.65 and ₹151.20.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved ₹6.30 between high and low, or 3.35%. For the last week, the stock has had daily average volatility of 3.61%.

The Samvardhana Motherson International Ltd stock is extremely overbought on RSI14 (97). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the Samvardhana Motherson International Ltd has been rising for 9 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

Our recommended stop-loss: ₹187.82 (-2.56%) (This stock has high daily movements and this gives high risk. The RSI14 is 97 and this increases the risk substantially. There is a buy signal from a pivot bottom found 17 days ago.)

Trading Expectations (MOTHERSON.BO) For The Upcoming Trading Day Of Wednesday 26th

For the upcoming trading day on Wednesday, 26th we expect Samvardhana Motherson International Limited to open at ₹191.82, and during the day (based on 14 day Average True Range), to move between ₹186.16 and ₹199.34, which gives a possible trading interval of +/-₹6.59 (+/-3.42%) up or down from last closing price. If Samvardhana Motherson International Limited takes out the full calculated possible swing range there will be an estimated 6.84% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ ₹164.60, some ₹28.15 (14.60%) from the current price of ₹192.75, our system finds the risk reward attractive.

Is Samvardhana Motherson International Limited stock A Buy?

Samvardhana Motherson International Ltd holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Current score: 0.000 Hold/Accumulate Unchanged

Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.

Predicted Opening Price for Samvardhana Motherson International Limited of Wednesday, June 26, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.