Hero MotoCorp, Eicher Motors shares slide up to 5%; analyst flags key support levels

Shares of most automobile companies came under selling pressure in Wednesday's trading session, dragging the Nifty Auto sub-index 1.79 per cent lower. Hero MotoCorp Ltd and Eicher Motors Ltd were among the notable laggards.

Hero MotoCorp shares declined 4.59 per cent to settle at Rs 5,300 on NSE, while Eicher Motors fell 3.24 per cent to Rs 7,711.50.

The selling came as investors assessed the sector's August sales and dispatch data. While domestic demand remained relatively resilient, export dispatches largely recorded a decline during the month.

Eicher Motors outlook

Mayank Jain, Market Analyst at Share.Market by PhonePe, said Eicher Motors witnessed a sharp single-day pullback after facing technical resistance near the psychological Rs 8,200 level.

"Indicators point to a higher probability of price consolidation within the Rs 7,365–7,740 range (support levels) rather than an immediate trend reversal," Jain stated.

He added that market participants would likely watch for buyer interest around key support levels before assessing the possibility of a resumption in upward momentum.

Hero MotoCorp outlook

On Hero MotoCorp, Jain said the stock witnessed notable selling pressure after encountering strong resistance near the Rs 6,000 zone.

"The probability currently favours a period of sideways, range-bound movement between the Rs 5,000 key support floor and the Rs 5,500 overhead resistance zone," he said.

Jain added that investors would monitor whether the Rs 4,800–5,000 support band holds, which could provide a reference point for assessing price stability and any subsequent upward move.