After NiftyAuto n its stocks saw nice momentum, now with good results in Auto proxy Ancillaries sector, stocks are also performing: Balkrishna Ind, Amara raja, Exide, Uno Minda, JBM Auto, Lumax, Rico auto showing good demand. Now come to MSUMI analysis, why it can give returns?
FA: -First of all decent growing QoQ, YoY and overall FY24 growth results for the company. -ROE: 42.4% (highest among top leaders and ROCE: 48% -Debt to equity : 0.15 (low)
TA: -DTL BO Anticipation (Down Trend Line Breakout), tested trend line(TL) 6 times. [More the TL tested, weaker it become] -HLs -VCP in action -Green vol > Red Vol (only concern can be big supply on 17/may but it can taken as final flushing of supplier from TL resistance, if now tested can break easily) -Shakeouts are there (kicking out weak players) -Tight closes with low vol
Overall loving the setup if possible will take cheat entry (Cheat : early entry from small base before BO in anticipation of BO)