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The stock of Motherson Sumi Systems gained 4.4 per cent accompanied by extraordinary volume on Monday, breaking above a key resistance at ₹160.
Since the stock took support in the band between ₹100 and ₹105 in late October 2020; it has been in a medium term uptrend.
After a corrective decline in January this year, the stock found support at ₹143 and bounced up continuing the uptrend. Further, the stock's recent rally on Monday has surpassed the 21- and 50-day moving averages. The daily relative strength index is likely to enter the bullish zone from the neutral region and the weekly RSI has entered the bullish zone backing the uptrend.
Moreover, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain implying buying interest. The short-term outlook is bullish for the stock. It can extend the uptrend and take the stock higher to ₹170 and ₹173 in the ensuing trading session. Traders with a short-term view can buy the stock with a stop-loss at ₹159.5 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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