Tech Alert: This largecap auto stock is testing its key DMA after 17 months

Hero MotoCorp stock so far on 5 occasions has successfully managed to hold the 100-DMA support, since the breakout in May 2023. Will it be sixth-time lucky too? Check upside, downside potential here.

Shares of Hero MotoCorp are seen trading near its 100-DMA (Daily Moving Average) for the last five trading sessions. Thus far, the stock has managed to sustain above its 100-DMA, which stands at Rs 5,455.

The 100-DMA is key for Hero MotoCorp, as the stock is seen testing this moving average after 17 months. Way back on May 08, 2023, the stock broke above its 100-DMA, which then stood at Rs 2,474 levels. Post which, the stock witnessed a spectacular rally and hit a peak at Rs 6,246 - a solid gain of 152 per cent.
 

However, at present, the stock has declined over 9 per cent from its peak and trades below Rs 5,500 levels. In the last 17 months, the Hero Moto stock has tested its 100-DMA on six occasions, and has successfully defended the same in the last five instances. 

Will Hero MotoCorp stock be able to defend its 100-DMA yet again? Here's what could happen either way.

Hero MotoCorp

Current Price: Rs 5,469

Upside Potential: 7.7%

Downside Risk: 14.1%

Support: Rs 5,455; Rs 5,134; Rs 4,925

Resistance: Rs 5,560; Rs 5,800

The short-term trend for Hero MotoCorp seems negative as the stock is trading below its 20- and 50-DMA. Technical chart suggests that the bias is likely to remain tepid as long as the stock trades below Rs 5,888; with interim resistance seen at Rs 5,560 and Rs 5,800. CLICK HERE FOR THE CHART

On the downside, in case the 100-DMA (Rs 5,455) fails to hold, the stock can then extend the fall towards the 200-DMA, which stands at Rs 4,925. The medium-term chart hints of a likely fall to Rs 4,700 in case the 200-DMA support fails. Interim support for the stock can be expected around Rs 5,134.