Shares of Hero MotoCorp and TVS Motor Company were off to a bumpy start so far this year. Hero MotoCorp has slumped 12.44 per cent on a year-to-date (YTD) basis, underperforming the benchmark BSE Sensex's 5.90 per cent decline in 2023 so far. The stock has fallen 6.14 per cent in the past one month. On Wednesday, the scrip inched 0.09 per cent up to close at Rs 2,379.10. In terms of sales, Hero MotoCorp reported a 10 per cent year-on-year (YoY) increase in total wholesales in February.
On the other hand, TVS Motor has slipped 4.01 per cent in a year, lower than the 30-share BSE pack's drop in 2023 so far. Though, TVS has lost 8.29 per cent in a month. The counter today witnessed a fag-end selling pressure and settled 1.35 per cent lower at Rs 1,030.30. In February this year, the two-wheeler maker recorded a 1.97 per cent dip in sales.
Here's what brokerage and technical analysts hinted about the two stocks:
Kotak Institutional Equities has assigned a 'Reduce' rating while pegging the counter at a fair value of Rs 2,600 over the next 12 months.
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "Hero MotoCorp has tumbled from the recent highs of Rs 2,800. The stock is hovering near the same levels as it was exactly a year ago. From here on, the downside seems limited as the sacrosanct support lies around the Rs 2,300-2,250-odd zone. Also, looking at the technical parameters, the stock has entered the oversold territory, and a reversal in the trend could provide an opportunity to gain a decent return in the counter from a medium-term perspective. On the flip side, the immediate hurdle is placed around the Rs 2,550-odd zone, and a decisive breach could only provide the needed thrust in a comparable period."
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, The counter has broken a strong demand zone at around Rs 2,450–2,400. The overall structure of the counter is substandard because it is trading below all important averages. But it is in a demand zone near Rs 2,350. On the upside, Rs 2,500 is an immediately susceptible area. The momentum indicators are also negatively poised."
AR Ramachandran from Tips2trades, said, "Hero MotoCorp has strong resistance at Rs 2,411 on the daily charts. A close above this level could be very bullish and lead to targets of Rs 2,490-2,540 in the coming days. Support will be at Rs 2,370."
Ganesh Dongre, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "At the current levels, traders can wait for some more time for a fresh breakout in this stock. We advise them to wait and watch for this stock for the time being."
TVS Motor Company
Kotak has given a 'Sell' call for TVS and pegged it at Rs 830 over a one-year period.
Sneha Seth, Derivatives Research Analyst at Angel One, said, "Post the sharp rally seen from the Rs 520 to 1,170-odd zone in the last financial year, TVS Motor has been consolidating in the range of Rs 960-1,140 from quite some time now. However, until it manages to sustain above the support around Rs 960, the bias remains positive."
Swastika Investmart's Gour said, "The counter has seen a long period of consolidation over the last six months, and it is facing resistance at the upper level at Rs 1,100–1,150 levels. The structure of the counter is range-bound, but it is seeing a strong demand level at around Rs 1,000. The stock has the potential to cross its psychological level of Rs 1,100 in the near term. Above this, we can expect Rs 1,200 to be the next susceptible level. On the downside, Rs 950 is the major support level."
Tips2trades' Ramachandran said, "TVS Motor faces strong resistance at Rs 1,057 on the daily charts. A close above this level could lead to targets of Rs 1,110-1,138 in the near term. Support will be at Rs 1,046."
Anand Rathi's Dongre said, "If the stock closes above Rs 1,110 on the daily scale, we can see a continuous upward rally in the stock. So, traders can buy this stock above Rs 1,110 with a stop loss placed at Rs 1,050 for a target price of Rs 1,200 for in the near term."
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