Trading strategies for 2-wheeler stocks post Hero Moto-Harley Davidson deal

Barring Eicher Motors, which is presently struggling near its 200-DMA; Bajaj-Auto, TVS Motor and Hero MotoCorp may rally up to 15%

Shares of Hero MotoCorp reached a new 52-week high on Wednesday, following the unveiling of a new bike with Harley Davidson. In contrast, Eicher Motors, its competitor witnessed a cut of 0.76 per cent post plunging 6 per cent in the previous session. 

Bajaj-Auto and TVS Motor Company, other listed players in the two-wheeler segment; were seen trading mixed on Wednesday. Bajaj-Auto gained 1.50 per cent, while TVS Motor Company saw a sluggish trade.

Here’s the technical outlook for two-wheeler stocks amid new launch by Hero MotoCorp:-

Hero MotoCorp Ltd (HEROMOTOCO) 

Likely target: Rs 3,550

Upside potential: 15%

Shares of Hero MotoCorp reached a new 52-week high, initiating fresh upside in the coming days. The current momentum points to a new historic peak, extending rally to Rs 3,550 level.

The stock has broken out of the “Golden Cross”, suggesting bullish momentum for a medium-term perspective. The support for the stock exits at Rs 2,900 an Rs 2,750 levels, as per the daily chart. The chart structure reveals robust strength aiming to cross any sell-off if arises along the way. CLICK HERE FOR THE CHART

TVS Motor Company Ltd (TVSMOTOR)

Likely target: Rs 1,500

Upside potential: 10%

The stock is experiencing selling pressure near Rs 1,350-mark, a consecutive close with increased volume could assist to breakout on the upside. 

When that occurs, the stock could rally to Rs 1500. Until then, the support of Rs 1,250 could serve as accumulation point. Only a decisive break down underneath Rs 1,200 might see the stock falling prey to a bear sell-off. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Likely target: Rs 5,200

Upside potential: 10%

Shares of Bajaj Auto have delivered a multi-year breakout on the monthly chart. And until the support of Rs 4,300 is defended, the trend is likely to view higher levels. So far, the candle is experiencing mild selling pressure near Rs 4,700-level and once this hurdle is conquered, the stock shall see Rs 5,200-mark.

While there is a price divergence on the daily chart, the price action is not letting bears to take control. Once Rs 4,700 is taken out, with conclusive chart set-up; the trend shall dismantle any negative bias. CLICK HERE FOR THE CHART

Eicher Motors Ltd (EICHERMOT)

Outlook: 200-DMA serves as support

The 200-day moving average (DMA) placed at Rs 3,373 could hold the upward bias for Eicher Motors shares. However, any slippage beneath this key mark could dent the underlying sentiment. The stock might slip in the direction of Rs 3,100.

Furthermore, Moving Average Convergence Divergence (MACD) must hold its movement over the zero line; any decline could send negative signals to bears. Going forward, the stock needs to sustain over Rs 3,600 to recoup the losing bias. CLICK HERE FOR THE CHART