MSUMI - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.8

Here’s a comprehensive technical breakdown of Motherson Sumi Wiring India Ltd. (MSUMI) based on current indicators and price action

📉 Trend Analysis

Current Trend: Reversing to bearish

Price is below both 50-DMA (₹40.2) and 200-DMA (₹39.7), indicating a short-term and medium-term downtrend.

RSI at 30.5 suggests the stock is approaching oversold territory, but not yet signaling a reversal.

MACD at -0.71 confirms bearish momentum with a negative crossover.

📊 Moving Averages

Indicator Value Signal

50-DMA ₹40.2 Resistance

200-DMA ₹39.7 Resistance

Price ₹37.5 Below both MAs (bearish)

The stock is trading below key moving averages, reinforcing a bearish bias.

📈 Momentum Indicators

RSI (14): 30.5 → Near oversold; weak momentum.

MACD: -0.71 → Bearish crossover; downward pressure.

Volume: 81.9L vs 1-week avg of 73.6L → Slightly above average, but likely driven by selling.

📉 Bollinger Bands

Price is near the lower band, indicating potential oversold conditions.

No squeeze pattern; volatility remains elevated.

📌 Support & Resistance Levels

Level Price Zone

Support 1 ₹36.5

Support 2 ₹34.8

Resistance 1 ₹39.7 (200-DMA)

Resistance 2 ₹40.2 (50-DMA)

Entry Zone: ₹36–₹37.5 (if RSI dips below 30 and stabilizes)

Exit Zone: ₹39.5–₹40.5 (near moving average resistance)

🔍 Chart Pattern & Price Action

No bullish reversal pattern visible.

Price action suggests a descending channel with lower highs and lower lows.

Trendlines show a clear downward slope.

⚠️ Conclusion

Technical Outlook: Bearish with potential for short-term bounce if RSI dips further.

Momentum: Weak and declining.

Suggested Strategy: Avoid fresh long positions until price reclaims ₹40+ with volume confirmation. Short-term traders may consider speculative entry near ₹36 with tight stop-loss.

Risk Level: High (due to weak EPS, high P/E, and poor recent profit trend)

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