Samvardhana Motherson International Limited (MOTHERSON) Stock - Complete Technical Analysis - Nov 28, 2024

Samvardhana Motherson International Stock Technical 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. Samvardhana Motherson International Limited (MOTHERSON) has been experiencing price volatility with the current price at 161.81, which is 25.43% below its 52-week high of 216.99. Recent price action shows that the stock is caught within a range between 161.03 and 164.29, indicating a lack of clear momentum. Technical indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator are in the oversold territory, signaling potential for a reversal or consolidation at these levels.

The key resistance levels lie between 166-167, as the stock has struggled to stay above this zone. Moving averages (10-day and 20-day) are aligning with this resistance area, making it a strong level to watch. On the downside, the stock seems to find support near 161.03, with the next potential support area at 155. A drop below this level would likely trigger further downside movement.

The MACD is negative, showing weak momentum and reinforcing the bearish sentiment in the stock. However, the ADX is high, suggesting that the downtrend could persist, but its crucial to watch for confirmation of either a breakout or a reversal.

The stocks P/E ratio is notably high at 86, which suggests overvaluation compared to its book value and low profitability indicators (ROE and ROCE). This makes MOTHERSON stock a potentially risky bet for long-term investments without clear signs of growth acceleration.

For short-term traders, watch for breakouts above the 166-167 range or confirmation of continued consolidation. As the stock continues to test these levels, its essential to monitor volume and volatility for further action.