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⭐️ Ultra Equity Advice #139 | Sell | Expected Profit 10-13%

 SELL  Eicher Motors Limited (NSE: EICHERMOT)

EICHER MOTORS STOCK RECOMMENDATION

CP# 20537.7
Idea SELL
Sell Range 20990 – 20400
Target 18590 – 17940
StopLoss* 21890
Duration 15 – 18 Trading Days
Potential Returns^ 10 – 13%
CP# Idea Sell Range Target StopLoss* Duration Potential Returns^
20537.7 SELL 20990 – 20400 18590 – 17940 21890 15 – 18 Trading Days 10 – 13%

# CP – closing price on 27 July 2020.
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 19564.
^ Potential returns are calculated based on the median of sell range.

 Verify Ultra Equity Advice #139

To verify our authenticity and credibility, do check the trading position update and recommendation timestamp. Be assured such records are permanent and irreversible.

EICHER MOTORS COMPANY OVERVIEW

Eicher Motors Limited (NSE: EICHERMOT) designs, develops, manufactures, assembles and sells two-wheelers motorcycles and commercial vehicles in India and internationally. The company Eicher Motor Limited owns Royal Enfield motorcycles brand which offers Classic, Bullet, Himalayan and Thunderbird models. Eicher Motors Limited (EML’S) 50-50 joint venture with the Sweden Volvo group, VE Commercial Vehicles Limited (VECV), designs, manufactures and markets light and medium-duty trucks, heavy-duty trucks and buses under Eicher brands and Volvo trucks. The buses are sold under the Skyline and Starline brands. The company EICHERMOT posts 17% decline in net profit at Rs 1827.44 crore in FY20; revenue dropped by 6.5%.

EICHER MOTORS STOCK INFORMATION

Stock Data
NSE CodeEICHERMOT
Sectoral IndexNifty Auto
52W High23,450
52W Low12,450.10
Face Value10
Relative Performance Price chart for Eicher Motors vs Nifty Auto Index

EICHER MOTORS TECHNICAL ANALYSIS (WEEKLY)

Eicher Motors Weekly Share Price Chart for Technical Analysis
Eicher Motors Technical Analysis - Weekly Price Chart
  • Looking at the Eicher Motors historical share price, the stock had witnessed a sharp decline from ₹ 32,236 to ₹ 12,450 in just two years.
  • In the recent past, the share price of Eicher Motors witnessed a strong rally from it’s support to it’s resistance.
  • After a consistent downtrend in the last three years, the stock price of Eicher Motors Limited had touched the resistance again, which corresponds to the earlier highs, thereby making it a strong resistance.
  • Overall, Eicher Motors (NSE: EICHERMOT) price chart and the broader pattern are bearish, and recent closing below the Resistance had given us the opportunity to sell the stock.
  • We expect Eicher Motors share target will be 10-13% below of the current market price. So, one can sell this stock based on our Swing Trading advice.

EICHER MOTORS TECHNICAL ANALYSIS (ROC)

Eicher Motors Daily Price and ROC chart for Technical Analysis
Eicher Motors Technical Analysis - Daily Price Chart
  • As seen in the Eicher Motors chart analysis, ROC (14) has formed negative divergence on the daily chart, which indicates lossing of buying momentum and a possible rise of trend reversal.

EICHER MOTORS TECHNICAL ANALYSIS (RSI)

Eicher Motors Daily Price and RSI chart for Technical Analysis
Eicher Motors Technical Analysis - Daily Price and RSI divergence
  • Eicher Motors share price is moving higher high, whereas the momentum oscillator RSI has formed lower low in the daily chart.
  • RSI has shown negative divergence on the daily chart; we are anticipating the Eicher Motor stock price will go down in future trading sessions.

CONCLUSION - EICHER MOTORS SHARE PRICE FORECAST

Based on our short term trading tips, Eicher Motors share price target will be 18,590-17,940 in the next 15 to 18 days.

EICHER MOTORS TRADING UPDATE - POSITION & ACTIVITIES

  • 28 July 2020

    Goodluck Capital Recommendation
    ⭐️ Ultra Equity Advice #139

  • 5 August 2020

    Trade closed: stop reached
    Exit Position at ₹ 21890

  • 5 August 2020

    Comment
    Return -4.3%

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MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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