Motherson Sumi Wiring India Limited (MSUMI) Stock - Complete Technical Analysis - Sep 26, 2024

Motherson Sumi Wiring India Limited (MSUMI) Stock Analysis Key Support & Resistance Levels

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Motherson Sumi Wiring India Limited (MSUMI) is currently trading at 72.29, which positions it 9.64% below its 52-week high of 80 and 24.96% above its 52-week low of 57.85. The stock has demonstrated some indecision in the market, as indicated by the Spinning Top candlestick pattern formed today. This pattern often signals uncertainty among traders. The Relative Strength Index (RSI) suggests the stock is nearing an overbought zone, while the Average Directional Index (ADX) shows a weak trend strength, indicating that the momentum isn't particularly strong at this stage.

The Moving Averages show consistent support around the 70-71 levels, with short-term Exponential Moving Averages (EMAs) slightly above this range, suggesting a healthy upward momentum. A key observation is the inside candle pattern formed on 24-Sep-2024, where the stock has traded within a narrow range for 3 days. This often signals a potential breakout or further consolidation.

Technical indicators like the MACD show a neutral stance with little divergence, while the Stochastic RSI and Williams Percent Range are signaling overbought conditions. The Commodity Channel Index (CCI) is sharply high, implying the stock is overextended in the short term, which might lead to some price correction or sideways movement.

With support near 67.54 and resistance around 73.89, traders should keep an eye on volume and momentum before making any entry or exit decisions. The stock's ROE of 42.4% and ROCE of 48.0% indicate a solid fundamental base, but with a high P/E of 48.1, some caution is advised regarding valuation levels.