motherson sumi share price: Big Movers on D-St: What should investors do with Motherson Sumi, Kalyan Jewellers, and City Union Bank?

The Indian market closed in the green for the third consecutive day on Tuesday. The S&P BSE Sensex closed with gains of over 500 points while the Nifty50 closed just below 17500.

Sector-wise, buying was seen in capital goods, public sector, real estate, autos, energy and utilities.

Stocks that have been in focus include

Wiring fell more than 1 percent, Kalyan Jewelers gained nearly 4 percent to hit a 52-week high on Tuesday.

Here’s what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors do in these stocks when the market trades again today:


Motherson Sumi: Avoid

On a longer-term chart, the stock made a strong bullish move from its low of 27 in March 2020 to an all-time high of 151 in June 2021.

Volumes were quite high and a Higher Top Higher Bottom pattern was observed during this time. From June 2021 to January 2022, the stock moved in the distribution phase and once it broke multiple lows of 110, a sharp sell-off to 64-odd levels was seen.

The price is also trading below the 200-WMA from 85. The stochastic oscillator is trading in a downtrend, which suggests that another correction is on the horizon.

One should avoid buying this stock at this level and on dips it can be bought for a 95-105 upside in the next 6-8 months.

As such, we recommend investors to wait for further dips and buy the stock around 56 levels with a stop loss of 48 on a weekly closing basis. On the upside, we can see levels of 95-105 over the next 6-8 months.

Jeweler Kalyan: Buy

On the daily chart, we see that the stock ranged from 55 to 67 from February 2022 to August 2022.

After only 6 months of consolidation, the price broke the range on the higher side to trigger a sharp rally up to the odd 104.65.

The volumes were quite high and a pattern formed with a higher top and bottom. From the highs, the price saw some sell-off as it took support from previous lows around 93 and moved above the previous high of 104.65; the stock continued to point higher from here.

Stochastic oscillators are moving in an uptrend along with an increase in volume, indicating a bull run from here. One can buy at this level for an upside target of 135-175 in the next 6-8 months.

Therefore, we recommend buying at this level and above on dips of 100 with a stop loss of 93 on a weekly close basis and on the upside we can see a 135-155 level in the next 6-8 months.

City Union Bank: Buy

On the weekly chart, the stock has corrected sharply from a November 2020 high of 200 to hit a 52-week low of 109 in March 2022.

At lower levels, the price has seen some buying pressure as it has retraced almost 90% of the previous rally and hit a high of 191 in September 2022.

In the last 5-8 weeks price has undergone some correction by forming a flag pattern taking support from any lower bottom and facing resistance from any lower high and the previous week with relatively higher volume price broke the pattern and closed above, suggesting further rally to the upside.

The stochastic oscillator has crossed above its red line, along with an increase in volume, suggesting bullish action with limited downside risk. One can buy at this level for an upside target of 220-240 in the next 6-8 months.

Hence we recommend buying at this level and higher on dips from 181 with a stop loss of 166 on a weekly close basis and on the upside we can see 220-240 levels in the next 6-8 months.

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times)

https://economictimes.indiatimes.com/markets/stocks/news/big-movers-on-d-st-what-should-investors-do-with-motherson-sumi-kalyan-jewellers-and-city-union-bank/articleshow/94955115.cms motherson sumi share price: Big Movers on D-St: What should investors do with Motherson Sumi, Kalyan Jewellers, and City Union Bank?

Russell Falcon

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