Samvardhana Motherson International Ltd Stock Forecast

Evaluation of Samvardhana Motherson International Ltd stock downgraded after the last trading session.
(Updated on Jun 27, 2024)

MOTHERSON.NS 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 ₹189.85 and ₹165.64. 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 39.68%. 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 is rising along with the price. This is considered to be a good technical signal.

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 ₹180.32 and ₹151.70. 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 ₹180.32. If this is broken, then the next support from accumulated volume will be at ₹151.70 and ₹151.25.

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 ₹7.62 between high and low, or 3.96%. For the last week, the stock has had daily average volatility of 3.52%.

The Samvardhana Motherson International Ltd stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs. Since the Samvardhana Motherson International Ltd has been rising for 10 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: ₹192.47 (-3.06%) (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 24 days ago.)

Trading Expectations (MOTHERSON.NS) For The Upcoming Trading Day Of Friday 28th

For the upcoming trading day on Friday, 28th we expect Samvardhana Motherson International Limited to open at ₹197.11, and during the day (based on 14 day Average True Range), to move between ₹191.09 and ₹206.01, which gives a possible trading interval of +/-₹7.46 (+/-3.76%) 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 7.51% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ ₹180.32, some ₹18.23 (9.18%) from the current price of ₹198.55, 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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: 0.000 Hold/Accumulate Downgraded

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 Friday, June 28, 2024

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