Top buzzing stock: Hero MotoCorp Ltd

Top buzzing stock: Hero MotoCorp Ltd

by 5paisa Research Team Last Updated: 2022-05-05T12:49:54+05:30

The stock of HEROMOTOCORP is bullish today and has surged about 4%.

Hero Motocorp is an auto-manufacturer, primarily engaged in manufacturing and selling two-wheelers across India. With a market capitalization of about Rs 50100 crore, it has one of the largest market share in the two-wheeler segment. The stock is in limelight due to its strong price action today.

The stock of HEROMOTOCORP is bullish today and has surged about 4%. It is one of the top gainers among the Nifty stocks. After its swing high of Rs 2552, the stock witnessed a nominal correction of about 5%. However, it found strong support near its 50-DMA and 20-day EMA, which led to a strong pullback today. It opened with a strong gap-up and continued to trade higher. On the technical chart, it has formed a strong bullish candle with its open=low scenario. The stock has also surged above its 100-DMA and has a bullish price structure in general.

Along with its strong price structure, several technical indicators point towards the bullishness of the stock. The 14-period daily RSI (60.50) has jumped from its prior swing low and indicates improving strength in the stock. The MACD continues to trade above the signal line and zero line, thus demonstrating strong momentum. Interestingly, the On Balance Volume (OBV) shows a similar characteristic as that of RSI and indicates improved strength from the volume’s perspective. The Elder Impulse System indicates a fresh buy signal, whereas KST and TSI indicators maintain their bullish view towards the stock. It is about 6% above its 20-DMA and thus, indicates short term bullishness. 

In one month, HEROMOTOCORP has gained nearly 8% and has outperformed the broader market. Considering the above factors, the stock is expected to test the level of Rs 2620 which is its 200-DMA. It presents a good opportunity for swing trading, and positional traders can expect good gains in the near term.

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