Eicher Motors shares dive 11% in 3 straight days; what's next: Rs 3,000 or Rs 3,500?
Eicher Motors share price: The stock has lost 11.19 per cent in three consecutive days. The market capitalisation (m-cap) has declined by Rs 11,114.63 crore during this period to Rs 88,197.39 crore. It settled 2.63 per cent lower at Rs 3,222.90 today over a previous close of Rs 3,309.95
- Jul 6, 2023,
- Updated Jul 6, 2023 7:34 PM IST
Shares of Eicher Motors on Thursday slipped for the third straight session. The stock has lost 11.19 per cent in three consecutive days. The market capitalisation (m-cap) has declined by Rs 11,114.63 crore during this period to Rs 88,197.39 crore. It settled 2.63 per cent lower at Rs 3,222.90 today over a previous close of Rs 3,309.95.
The Royal Enfield-owner's share price started falling after Hero MotoCorp (along with Harley Davidson) and Bajaj Auto (in partnership with Triumph) launched their new vehicles. Hero and Harley launched the Harley Davidson X440 with a starting price tag of Rs 2.29 lakh. Triumph and Bajaj launched the Speed 400 and Scrambler 400X, priced at Rs 2.33 lakh.
This space is dominated by Royal Enfield (RE). "Currently, Royal Enfield occupies 90 per cent market share in the segment. We expect Harley and Triumph to also compete with RE in export markets in the next two years," said Nomura India. Motilal Oswal said Harley X440's starting price is very aggressive. It ticks all the right boxes on paper to make it successful, it noted.
On the technical front, analysts largely felt that Eicher Motors' stock looked 'weak'. Support levels could be seen around Rs 3,150, breaching which it may test Rs 3,000, an analyst said. The counter faces a strong hurdle around the Rs 3,450-3,500 zone, he also mentioned. Another analyst suggested that a close above Rs 3,275 could be used to buy for a target of Rs 3,500 in the near term.
Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "Eicher Motors witnessed weakness on shorter duration charts, which is confirmed by the fact that the stock is now trading below all its major EMAs. However, the recent drop on the back of very high volumes should find some cushion near its 220-DEMA placed around Rs 3,240. As far as levels are concerned, the stock has immediate support placed around Rs 3,150, breaching which the earlier breakout zone of Rs 3,000-2,980 could be tested. On the higher side, a strong hurdle is placed in the Rs 3,450-3,500 zone."
Ravi Singh, Vice-President and Head of Research at Share India, said, "The stock seems weak on intraday and daily charts. The current formation and momentum indicators are suggesting a weak trend ahead. The stock may touch the levels of Rs 3,000 in the near term."
AR Ramachandran from Tips2trades said, "Eicher Motors is bearish but also oversold and now faces resistance at Rs 3,275 on the Daily charts. A daily close above this resistance could be used to buy for a target of Rs 3,500 in the near term. Next support will be at Rs 3,148."
VLA Ambala, Research Analyst at Stock Market Today, said, "Rs 3,140 is the closest support for the stock. If it breaks down to this level, it will be better to exit it. Those who are holding it can consider the said level as a stop loss point. Target expectancy could be between Rs 3,285 and Rs 3,400. RSI and MACD both are hinting at the bearish zone and oversold range. So, in case anyone is planning to buy a fresh long position then at least wait for the share price to trade above Rs 3,255, which may trigger bullish sentiment for a short-term view."
Meanwhile, Indian equity benchmarks scaled fresh closing peaks today. The 30-share BSE Sensex pack gained 340 points or 0.52 per cent to settle at 65,786, while the broader NSE Nifty added 99 points or 0.51 per cent to close at 19,497.
Also read: Infosys shares: Can Q1 results give worst Nifty stock performer some relief?
Also read: CLSA's India Bull-Bear index shows 96% bullish reading for market
Watch: Kanwariyas dancing in Delhi Metro, watch viral video; know importance of Saawan, Kanwar Yatra
Shares of Eicher Motors on Thursday slipped for the third straight session. The stock has lost 11.19 per cent in three consecutive days. The market capitalisation (m-cap) has declined by Rs 11,114.63 crore during this period to Rs 88,197.39 crore. It settled 2.63 per cent lower at Rs 3,222.90 today over a previous close of Rs 3,309.95.
The Royal Enfield-owner's share price started falling after Hero MotoCorp (along with Harley Davidson) and Bajaj Auto (in partnership with Triumph) launched their new vehicles. Hero and Harley launched the Harley Davidson X440 with a starting price tag of Rs 2.29 lakh. Triumph and Bajaj launched the Speed 400 and Scrambler 400X, priced at Rs 2.33 lakh.
This space is dominated by Royal Enfield (RE). "Currently, Royal Enfield occupies 90 per cent market share in the segment. We expect Harley and Triumph to also compete with RE in export markets in the next two years," said Nomura India. Motilal Oswal said Harley X440's starting price is very aggressive. It ticks all the right boxes on paper to make it successful, it noted.
On the technical front, analysts largely felt that Eicher Motors' stock looked 'weak'. Support levels could be seen around Rs 3,150, breaching which it may test Rs 3,000, an analyst said. The counter faces a strong hurdle around the Rs 3,450-3,500 zone, he also mentioned. Another analyst suggested that a close above Rs 3,275 could be used to buy for a target of Rs 3,500 in the near term.
Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "Eicher Motors witnessed weakness on shorter duration charts, which is confirmed by the fact that the stock is now trading below all its major EMAs. However, the recent drop on the back of very high volumes should find some cushion near its 220-DEMA placed around Rs 3,240. As far as levels are concerned, the stock has immediate support placed around Rs 3,150, breaching which the earlier breakout zone of Rs 3,000-2,980 could be tested. On the higher side, a strong hurdle is placed in the Rs 3,450-3,500 zone."
Ravi Singh, Vice-President and Head of Research at Share India, said, "The stock seems weak on intraday and daily charts. The current formation and momentum indicators are suggesting a weak trend ahead. The stock may touch the levels of Rs 3,000 in the near term."
AR Ramachandran from Tips2trades said, "Eicher Motors is bearish but also oversold and now faces resistance at Rs 3,275 on the Daily charts. A daily close above this resistance could be used to buy for a target of Rs 3,500 in the near term. Next support will be at Rs 3,148."
VLA Ambala, Research Analyst at Stock Market Today, said, "Rs 3,140 is the closest support for the stock. If it breaks down to this level, it will be better to exit it. Those who are holding it can consider the said level as a stop loss point. Target expectancy could be between Rs 3,285 and Rs 3,400. RSI and MACD both are hinting at the bearish zone and oversold range. So, in case anyone is planning to buy a fresh long position then at least wait for the share price to trade above Rs 3,255, which may trigger bullish sentiment for a short-term view."
Meanwhile, Indian equity benchmarks scaled fresh closing peaks today. The 30-share BSE Sensex pack gained 340 points or 0.52 per cent to settle at 65,786, while the broader NSE Nifty added 99 points or 0.51 per cent to close at 19,497.
Also read: Infosys shares: Can Q1 results give worst Nifty stock performer some relief?
Also read: CLSA's India Bull-Bear index shows 96% bullish reading for market
Watch: Kanwariyas dancing in Delhi Metro, watch viral video; know importance of Saawan, Kanwar Yatra