In the previous session, the market opened gap up and sell off was seen in the over all market in the early trade. Nifty managed to close in Green. Volatile session was seen yesterday. Technically, No signs of weakness have been seen yet. Hence, we recommend approaching the markets in a sector and stock-specific way. Sectors to watch are Realty, Auto and IT.

Motherson Sumi Systems Ltd

NSE :MOTHERSUMI   BSE :517334  Sector : Auto Ancillaries

Looking at the daily chart we can clearly see the stock breaking trend line. As of today , the AUTO Sector gained momentum. Monthersumi has seen breakout with Volumes which confirm the breakout and we expect stock to head towards higher levels.

AUTO Sector today closed with gains of approx. 3% where all the Automobile companies (2 wheeler, 3 Wheeler and 4 Wheeler), auto ancillaries and batteries companies gained momentum.

Hence we recommend keeping these stocks on the radar till festival season gets over. In short we recommend to go long on Mothersumi for the target of 242-250 with stop loss placed below today’s low i.e. 224.70