Maharashtra Scooters Zooms 7%: Will It Touch the Rs 10,000 Mark

Maharashtra Scooters Ltd (MSL) continues to operate as a Core Investment Company (CIC), which does not require registration with the RBI. As a CIC, a minimum of 90% of its assets are invested in the Bajaj group. The remaining balance, representing accumulated surpluses, is invested in debt and other instruments with the sole objective of earning a reasonable rate of return while protecting the principal.

Expansion into Manufacturing

The Company sees an opportunity in manufacturing pressure die casting dies, castings, jigs, and fixtures, primarily for the two and three-wheeler industry, among other industries. This is the current manufacturing activity of the Company. The customer profile has since expanded from auto components to include the Telecom segment, the Generator segment, the Electric Vehicle segment, and LED Light parts.

Share Price Performance

The share price of Maharashtra Scooters climbed 7% on Monday, marking a fresh 52-week high of Rs 8,983 on the NSE. The share of Maharashtra Scooters opened at Rs 8,320.05, and interestingly, the opening level of the day also turned out to be the intraday low for the stock, resulting in the formation of an open=low candle.

Volume Surge and Trend Analysis

The stock rallied on Monday on the back of a surge in volume. The total traded volume on the NSE stood at about 28,600 shares, the highest single-day volume in almost eight months, and more than double the 10-day average volume of 10,254 shares, highlighting larger participation in the direction of the trend.

Technical Indicators

On the daily chart, the stock has seen a breakout of a two-month-long cup and handle pattern. The daily 14-period RSI is rebounding after forming a base at the nine-period average, thus supporting the positive bias. The daily MACD is pointing northward while sustaining above its nine-period average, validating the positive bias in the stock. The trend strength is good, as ADX is at 24.85, with the +DMI above the ADX and -DMI.

Performance in 2024

The stock has gained 22% in 2024, and in the month of June, the stock has rallied about 17%. Also, as per the pattern target, there is a probability the stock may rally up to Rs 9,240.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.