MSUMI - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.8

📊 Swing Trade Analysis: MSUMI (Motherson Sumi Wiring India Ltd.)

MSUMI shows strong technical momentum and solid profitability, making it a fair candidate for swing trading. However, elevated valuation and slight earnings contraction suggest a cautious approach.

✅ Strengths

Technical Indicators

MACD (2.29): Bullish crossover, indicating upward momentum.

RSI (66.6): Positive, nearing overbought but still tradable.

Price above 50 DMA (₹43.3) and 200 DMA (₹40.7): Confirms bullish trend.

52w Index (90.5%): Strong recovery from lows.

Fundamentals

ROCE (42.5%) and ROE (35.9%): Excellent capital efficiency.

Debt-to-Equity (0.16): Low leverage.

FII Holding Increase (+0.26%): Positive institutional sentiment.

⚠️ Weaknesses

High P/E (53.7) vs Industry PE (29.1): Overvalued.

PEG Ratio (5.46): Indicates poor growth relative to valuation.

Quarterly Profit Decline (-3.88%): Slight earnings contraction.

DII Holding Decline (-0.33%): Domestic investors pulling back.

EPS (₹0.90) and Book Value (₹2.56): Weak intrinsic value metrics.

Volume below average: May limit short-term momentum.

🎯 Optimal Entry Price

Entry Zone: ₹44–₹46

A pullback near the 50 DMA offers a better risk-reward setup.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹50–₹51

Near recent high and psychological resistance.

Stop Loss: ₹43

Just below 50 DMA and support zone.

Time Horizon: 1–2 weeks, depending on volume and RSI behavior.

This setup suits short-term momentum traders who are comfortable with elevated valuations and can manage moderate volatility. Let me know if you'd like help tracking this trade or exploring stronger earnings setups.

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