Two-wheelers in focus: Hero Moto, Bajaj Auto await breakout for fresh rally

Hero MotoCorp, Bajaj Auto and Eicher Motors need to cross their significant hurdles with aggressive volume for further gains to emerge.

Shares of two-wheeler makers were in limelight on Friday after Hero MotoCorp announced its decision to raise product prices with effect from July 01. The stock rallied 3 per cent and was the top performer among the pack. 

The company said the price revision has been necessitated to partially offset the steadily growing overall cost inflation, including commodity prices. READ MORE

Historically it is seen, that whenever one company announces a price hike, competititors within the industry follow suit. Hence, all two-wheeler makers including Bajaj Auto, TVS Motor and Eicher Motors logged steady gains.

Here’s a technical outlook on the three two-wheeler stocks for the coming sessions:

Hero MotoCorp Ltd (HEROMOTOCO) 

Outlook: Socks may rise to Rs 2,900, if sustains above Rs 2,810

This is the second continuous gap-up session for Hero MotoCorp with the Moving Average Convergence Divergence (MACD) making efforts to climb over the zero line. The momentum and strength seems to be strengthening, shows the daily chart. Stability above Rs 2,650 could mean a rally towards Rs 2,810 level, the last negative reversal mark. And if the counter manages to overcome this hurdle, the stock can even rise to Rs 2,900 mark. CLICK HERE FOR THE CHART

Also read: Planning to reshuffle your portfolio? These 5 stocks may pump up gains

Bajaj Auto Ltd (BAJAJ-AUTO)

Outlook: Sideways trend

Bajaj Auto shares trade sideways and as long as the stock defends Rs 3,602, its 200-day moving average (DMA), the stock may attempt to combat the selling pressure emerging in the range of Rs 4,000 to Rs 3,950 levels. So far, the price action signals a sluggish trend, as per the daily chart.CLICK HERE FOR THE CHART

Eicher Motors Ltd (EICHERMOT)

Outlook: Awaits Flag pattern breakout

A “Flag pattern” formation has a breakout mark at Rs 2,900, shows the weekly chart. This significant level needs to be conquered on robust volumes, which will hint at an aggressive breakout. Until this does not happen, the stock price can retrace to Rs 2,600 levels. A breakout over Rs 2,900 might see a new all-time high of Rs 3,150 level. CLICK HERE FOR THE CHART