The 100-DMA is key for Hero MotoCorp, as the stock is seen testing this moving average after 17 months. Way back on May 08, 2023, the stock broke above its 100-DMA, which then stood at Rs 2,474 levels. Post which, the stock witnessed a spectacular rally and hit a peak at Rs 6,246 – a solid gain of 152 per cent.
However, at present, the stock has declined over 9 per cent from its peak and trades below Rs 5,500 levels. In the last 17 months, the Hero Moto stock has tested its 100-DMA on six occasions, and has successfully defended the same in the last five instances.
Will Hero MotoCorp stock be able to defend its 100-DMA yet again? Here’s what could happen either way.
Hero MotoCorp
Current Price: Rs 5,469
Upside Potential: 7.7%
Downside Risk: 14.1%
Support: Rs 5,455; Rs 5,134; Rs 4,925
Resistance: Rs 5,560; Rs 5,800
On the downside, in case the 100-DMA (Rs 5,455) fails to hold, the stock can then extend the fall towards the 200-DMA, which stands at Rs 4,925. The medium-term chart hints of a likely fall to Rs 4,700 in case the 200-DMA support fails. Interim support for the stock can be expected around Rs 5,134.
First Published: Oct 11 2024 | 2:11 PM IST
