MOTHERSON - Swing Trade Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Swing Trade ListSwing Trade Rating: 4.0
📊 Analysis Summary
MOTHERSON offers a moderately strong swing trade setup, supported by technical stability, reasonable valuation, and improving earnings. While not explosive, it’s a low-risk, steady candidate for a short-term move, especially if volume picks up.
✅ Strengths
MACD Positive (0.01): Just turned bullish — early momentum signal.
RSI at 53.0: Neutral to bullish — room for upside without being overbought.
Trading Above Key Averages: Current price ₹103 is above both 50 DMA (₹100) and 200 DMA (₹99.2), indicating trend support.
PEG Ratio (0.46): Suggests growth is reasonably priced.
ROCE (13.9%) & ROE (12.5%): Solid profitability metrics.
Improving PAT: ₹1,050 Cr. vs ₹879 Cr. — strong quarterly performance.
Low Debt-to-Equity (0.49): Financially stable.
⚠️ Weaknesses
Volume Drop: Current volume (62.8 lakh) is significantly below 1-week average (180.6 lakh) — needs confirmation via volume surge.
DII Selling (-0.27%): Slight decline in domestic institutional sentiment.
Qtr Profit Var (-23.4%): Despite higher PAT, variability suggests earnings volatility.
52w Index (42.5%): Still far from 52-week high — recovery phase.
📈 Optimal Entry Price
Buy Zone: ₹100–₹102 Near 50 DMA and psychological support — ideal for low-risk entry.
📉 Exit Strategy (If Already Holding)
Target Exit: ₹112–₹115 Short-term resistance zone and potential swing target.
Stop Loss: ₹97 Below 200 DMA — exit if trend breaks down.
🧠 Final Thoughts
MOTHERSON is a technically stable swing candidate with improving fundamentals and a favorable PEG ratio. It’s best suited for traders seeking a gradual upside rather than a breakout. Watch for volume confirmation and price action near ₹105 to validate momentum.
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