Motherson Sumi is trading in rising channel pattern since October 2014 and thrice reported a strong reversal after visiting lower band of the channel. From last couple of sessions stock was trading in negative momentum, but yesterday managed to halt further decline with a firm close. We believe stock will resume its uptrend post forming base around major moving averages and climb higher levels in near-term, as daily technical indicators, such as Stochastic (5,3) and RSI (14,9) are also bottoming out.
Thus, for today's trade, long position can be initiated only in Rs450-440 for target of Rs490 with a strict stop loss below Rs430.
INTRADAY PICKS
DIVISLAB (LTP: 1699) SELL
For today's trade, short position can be initiated only in Rs1730- 1745 range for target of Rs1660 with a strict stop loss of Rs1765. Traders are advised to avoid early morning whipsaw.
CAIRN (LTP: 251) BUY
For today's trade, long position can be initiated only in Rs246- 243 range for target of Rs260 with a strict stop loss of Rs240. Traders are advised to avoid early morning whipsaw.
Rallies Buy between 252-255, Target 265, Stop Loss 248
RECLtd Buy between 329-332, Target 343, Stop Loss 324
the previous theme is far better then.
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