Hero MotoCorp Ltd

NSE :HEROMOTOCO   BSE :500182  Sector : Automobile

About Company: Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle manufacturers. The company started in 1984 as a Technological collaboration with Honda, Japan. Before this collaboration, Hero was selling Cycles under the brand name, Hero Cycles. In 2011, Honda group sold its 26% stake in the company to the Munjals (promoters) and ended the JV. Post the termination of JV, the name of the company was changed to Hero Motocorp.

Daily Chart of Hero MotoCorp Ltd:

Technical Outlook of Hero MotoCorp Ltd:

On Wednesday 27th April 2022, Stock gained 3.85% in a weak market and stock was top gainer in the F&O Segment. Just a day before April 2022 series expiry huge short covering has been witnessed in the stock, With fresh longs added. If we look at the chart structure, the stock has formed a “Double Bottom Pattern” forming strong support at 2150.

For the further analysis we plotted Fibonacci Retrenchment on the previous trend and observed that stock has touched 50% Fibo level at 2510. Also today stock managed to close above 100 days exponential Moving average. The Relative Strength Index also gained momentum and closed above 60 mark.

Looking at the chart structure and rise in prices with volumes we expect further rally to be seen in the stock hence we recommend to enter the stock around current levels 2480- 2500 with stop loss placed below 2370 for the targets of 2594- 2716 in the next 1-2 Months.