Hero MotoCorp’s share price touched a lifetime high of ₹5,894.30 last month. However, the uptrend lost steam, leading to the stock declining a little and entering a consolidation phase. For the past three weeks, it has been oscillating between ₹5,420 and ₹5,670. The price action shows that ₹5,420 is acting as a good base and this can trigger a rally. Soon, we expect Hero MotoCorp’s stock to surpass ₹5,670 and retest the prior high.
Today’s Stock Recommendation: July 19, 2024
As the downside looks limited, the risk-reward ratio is favourable for long positions now. So, one can buy at ₹5,500 and accumulate if the price dips to ₹5,420. Place stop-loss at ₹5,340. When the stock moves past ₹5,670, raise the stop-loss to ₹5,450. On a rally to ₹5,780, tighten the stop-loss further to ₹5,650. Exit at ₹5,850.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)