Samvardhana Motherson International Ltd - Stock Investment Idea Weekly Pick
Samvardhana Motherson International Ltd. has rebounded from its 61.8% retracement base near ₹80–₹90 and broken out of a triangle pattern with strong volume support. The stock is trading above anchored VWAP and POC, with RSI breakout and a bullish DMI crossover confirming momentum. Accumulate ₹102–₹106 for targets of ₹125–₹135. Stop loss: ₹89.
Expert recommendation by Mr. Ketan Kaushik - Derivative Analyst (NISM - 202200162803)
- Current Price: ₹104.70
- Buying Price: ₹102-106
- Target Price: ₹125-135
- Stop loss: ₹89
- Upside: 29%
- Time Frame: 8-10 Weeks
Stock Technical Analysis
- Stock made an all-time high at 144 in Sep24; after making highs, stock had witnessed sharp correction till 61.8 Fibonacci level and made a base in 80-90 zone
- Stock has given a breakout from the triangle chart pattern and closed above anchored VWAP resistance level
- Stock has closed above POC (Point of control) line which indicates buying interest with volume support
- Momentum indicator RSI has given breakout above 60 level and DMI has also given bullish crossover with ADX sloping upward above 20 level on the daily chart which indicates upside momentum is likely to continue in the coming days
Traders can look to accumulate MOTHERSON in the 102-106 zone and expect upside targets of 125-135 in 8-10 weeks with stop loss below 89 (closing basis).
Know more about Samvardhana Motherson International Ltd. – Diversified Auto Components Leader on Path to Broader Industrial Play
Website: motherson.com
Sector: Auto Ancillaries / Components, with growing exposure to Non-Auto, Aerospace & Industrial Solutions
Samvardhana Motherson is a high potential, diversified components and solutions company, anchored in auto but increasingly repositioning itself into broader industrial, aerospace, health & medical tech segments. For long-term investors:
- If you believe automotive growth (including EVs) + global supply chain opportunities will expand, Motherson is well placed.
- The non-auto push could provide buffer in downturns, if executed well.
- But margin risks, valuation premiums, and execution complexity mean this is not without risk.
Disclaimer - Investments in securities market are subject to market risk, read all the related document carefully before investing.
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