Eicher Motors shares down 13% in 5 days; tech charts indicate weakness may persist
Eicher Motors share price: The counter's 14-day relative strength index (RSI) came at 25.22. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 33.21. It has a price-to-book (P/B) value of 6.76. The scrip has a one-year beta of 0.92, indicating low volatility
- Jul 10, 2023,
- Updated Jul 10, 2023 6:38 PM IST
Shares of Eicher Motors Ltd settled lower on Monday, continuing their downward trend for the fifth consecutive session. The stock today fell 0.33 per cent to close at Rs 3,173.85 on BSE against a previous close of Rs 3,184.45. In five days, it has plunged 12.54 per cent. The Royal Enfield-owner's stock 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. The fresh launches are likely to challenge the monopoly of Royal Enfield in the cruiser bike segment.
On technical setup, analysts largely suggested that the stock looked 'weak'. Support on the counter could be seen around Rs 3,150 levels.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said, "The stock has witnessed a very steep fall from Rs 3,650 zone. It is in a bearish mode with a further downside support visible near Rs 3,080 levels. For the bias to improve, it would need to cross Rs 3,350 with some consolidation for a further upward move."
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. As far as levels are concerned, the stock has immediate support placed around Rs 3,150, breaching which Rs 3,000-Rs 2,980 levels could be tested. On the higher side, a strong hurdle is placed in the Rs 3,450-3,500 zones."
Market Expert Ravi Singh said, "The recent launches of cruiser bikes by the rivalry companies at extremely competitive and similar price points may challenge the monopoly of Eicher Motors' Royal Enfield. The stock is currently looking weak and may touch the levels of Rs 3,100 in near term."
AR Ramachandran from Tips2trades said, "Eicher Motors is bearish but also oversold and now faces resistance at Rs 3,248 on the daily charts. A daily close above this resistance could be used to buy for target of Rs 3,500 in the near term. Next support will be at Rs 3,148."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The recent meltdown in Eicher Motors has resulted in around 13 per cent correction. If anyone wants to buy, upside target would be Rs 3,500 with a strict stop loss placed at Rs 3,075."
The counter's 14-day relative strength index (RSI) came at 25.22. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 33.21. It has a price-to-book (P/B) value of 6.76. The scrip has a one-year beta of 0.92, indicating low volatility.
Meanwhile, Indian equity benchmarks traded higher today amid a choppy session. The domestic indices climbed today led by strong gains in energy and metal stocks. The 30-share BSE Sensex pack rose 64 points or 0.10 per cent to close at 65,344; while the broader NSE Nifty index moved 24 points or 0.12 per cent up to settle at 19,356.
Shares of Eicher Motors Ltd settled lower on Monday, continuing their downward trend for the fifth consecutive session. The stock today fell 0.33 per cent to close at Rs 3,173.85 on BSE against a previous close of Rs 3,184.45. In five days, it has plunged 12.54 per cent. The Royal Enfield-owner's stock 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. The fresh launches are likely to challenge the monopoly of Royal Enfield in the cruiser bike segment.
On technical setup, analysts largely suggested that the stock looked 'weak'. Support on the counter could be seen around Rs 3,150 levels.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said, "The stock has witnessed a very steep fall from Rs 3,650 zone. It is in a bearish mode with a further downside support visible near Rs 3,080 levels. For the bias to improve, it would need to cross Rs 3,350 with some consolidation for a further upward move."
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. As far as levels are concerned, the stock has immediate support placed around Rs 3,150, breaching which Rs 3,000-Rs 2,980 levels could be tested. On the higher side, a strong hurdle is placed in the Rs 3,450-3,500 zones."
Market Expert Ravi Singh said, "The recent launches of cruiser bikes by the rivalry companies at extremely competitive and similar price points may challenge the monopoly of Eicher Motors' Royal Enfield. The stock is currently looking weak and may touch the levels of Rs 3,100 in near term."
AR Ramachandran from Tips2trades said, "Eicher Motors is bearish but also oversold and now faces resistance at Rs 3,248 on the daily charts. A daily close above this resistance could be used to buy for target of Rs 3,500 in the near term. Next support will be at Rs 3,148."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The recent meltdown in Eicher Motors has resulted in around 13 per cent correction. If anyone wants to buy, upside target would be Rs 3,500 with a strict stop loss placed at Rs 3,075."
The counter's 14-day relative strength index (RSI) came at 25.22. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 33.21. It has a price-to-book (P/B) value of 6.76. The scrip has a one-year beta of 0.92, indicating low volatility.
Meanwhile, Indian equity benchmarks traded higher today amid a choppy session. The domestic indices climbed today led by strong gains in energy and metal stocks. The 30-share BSE Sensex pack rose 64 points or 0.10 per cent to close at 65,344; while the broader NSE Nifty index moved 24 points or 0.12 per cent up to settle at 19,356.