Over
the past three days, the share price of Eicher Motors has dropped consistently
by 11.19%.
The market valuation (M-value) dropped consistently during
this period, declining from 11,114.63 crore to 88,197.39 crore.
It decreased
by 2.63% from the previous closing level of ₹3309.95 to conclude at ₹3222.90
today.
Thursday's
third session saw a decline in the price of Eicher Motors' shares.
The stock has
dropped consistently for the last three days by 11.19%.
Market capitalization
(M-cap) fell from 11,114,63 crore to 88,197,39 crore during this time.
It decreased
by 2.63% from the previous closing level of ₹3309.95 to conclude at ₹3222.90
today.
After the release of new products from Hero Motocorp (in conjunction with Harley-Davidson) and Bajaj
Auto (in partnership with Triumph) have seen a decrease in the share price of
Royal Enfield.
Hero and Harley collaborated to introduce the all-new
Harley-Davidson X440, which hit the market with an enticing price tag of 2.29
lakhs.
Simultaneously, Triumph and Bajaj joined forces to unveil their remarkable offerings, namely the Speed 400 and the Scrambler 400X, captivating motorcycle enthusiasts with their competitive price of ₹2.33 lakhs.
This market segment is dominated
by Royal Enfield.
According to Nomura India, Royal Enfield now has a 90% market dominance in this industry.
Over the next two years,
we anticipate that RE will face competition from Harley and Triumph in the
international markets.
According to Motilal
Oswal, the Harley X440's starting pricing is pretty competitive, and it tries
to check all the appropriate boxes on paper to be a success.
In terms of technical indicators, market analysts hold the
consensus that the stock of Eicher Motors exhibits signs of vulnerability.
An analyst
suggested that the support level could be seen around ₹3,150,
and breaking that, it could test the ₹3,000 mark.
They also
mentioned that the counter is facing strong resistance in the range of ₹3,450-3,500.
Another
analyst recommended buying at closing prices above ₹3,275
for a target of ₹3,500 in the near term.
Angel One's
senior analyst for technical and derivative research, Osho Krishna, stated,
"Eicher Motors is showing weakness on the short-term chart, confirming
that the stock is now trading below all its major EMAs (Exponential Moving
Averages).
Nevertheless, subsequent to a notable downturn, a respite is
anticipated for the price as it approaches the 220-day exponential moving
average (DEMA) level, positioned approximately at ₹3,240.
In terms of
levels, the stock is currently holding immediate support around ₹3,150,
which could break the previous breakout zone of ₹3,000-2,980.
In terms of upward movement, a formidable barrier exists
within the price range of ₹3,450 to ₹3,500, exerting significant resistance.
Ravi Singh, Deputy Vice President and Head of Research at Share India, expressed
his observation by stating, "Both the intraday and daily charts reflect
the stock's vulnerability and weakness.
The current formation and momentum indicators suggest further downside pressure.
In the near future, there is a possibility of the stock
reaching a level of ₹3,000, potentially attaining that mark within a short span
of time.
In the short
term, resistance is being faced around ₹3,275 on the daily chart.
To pursue a buying strategy with a near-term target of
₹3,500, it would be prudent to consider a daily closing price above the
aforementioned resistance level as a trigger for executing the trade.
The next
support level will be ₹3,148."
AR
Ramachandran from Tips2Trades stated, "Eicher Motors is in a downtrend but
is also oversold, and now it is facing resistance at ₹3,275
on the daily chart.
For buying
with a target of ₹3,500 in the near term, a daily close
above this resistance can be used.
The next
support will be at ₹3,148." Stock Market Today's
research analyst, VLA Ambala, said, "The nearest support for the stock is
around ₹3,140.
If it breaks
this level, it would be better to exit.
Those who are
holding it can consider the mentioned level.
A stop-loss
point can be placed.
The target
expectation could be between ₹3,285 and ₹3,400.
Both RSI and
MACD indicate weakness in the bearish territory and overbought range.
Hence, for those contemplating the initiation of a fresh
long position, it is advisable to exercise patience and await the share price
to surpass the threshold of ₹3,255 before taking action, as this breakthrough
has the potential to instill a bullish sentiment in the market for the short
term.
Meanwhile, the
benchmark index of the Indian equity market reached a new closing peak today.
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