The share price of Eicher Motors has dropped 11.19% in three days in a row. During this time, the market capitalization (m-cap) has gone down by Rs 11,114.63 crore to Rs 88,197.39 crore. It ended the day at Rs 3,222.90, which is 2.63 percent less than where it ended yesterday, which was Rs 3,309.95.
Shares of Eicher Motors fell for the third day in a row on Thursday. The stock has dropped 11.19% in three straight days. During this time, the market capitalization (m-cap) has gone down by Rs 11,114.63 crore to Rs 88,197.39 crore. It ended the day at Rs 3,222.90, which is 2.63 percent less than where it ended the day before, which was Rs 3,309.95.
After Hero MotoCorp (in partnership with Harley Davidson) and Bajaj Auto (in partnership with Triumph) released their new cars, the share price of the company that owned Royal Enfield started going down. Hero and Harley brought out the Harley Davidson X440, which starts at Rs 2.29 lakh. The Speed 400 and Scrambler 400X, which were made by Triumph and Bajaj, cost Rs 2.33 lakh.
Royal Enfield (RE) is the leader in this market. The segment currently has a 90% market share held by Royal Enfield. In the next two years, Nomura India predicted that Harley and Triumph will also fight with RE in foreign markets. The starting price of the Harley X440 is extremely aggressive, according to Motilal Oswal. On paper, it checks all the right boxes to make it work, it said.
From a technical point of view, most experts thought Eicher Motors’ stock looked “weak.” An expert said that if the price fell below Rs 3,150, it could go as low as Rs 3,000. He also said that the Rs 3,450–3,500 area is a tough spot for the market. A second expert said that a close above Rs 3,275 could be used to buy with a short-term goal of Rs 3,500.
Angel One’s Senior Analyst for Technical and Derivative Research, Osho Krishan, said, “Eicher Motors showed weakness on shorter-term charts, which is supported by the fact that the stock is now trading below all of its major EMAs. But the latest drop, which was caused by a lot of trading, should find some support near its 220-DEMA, which is around Rs 3,240. In terms of levels, the stock has immediate support around Rs 3,150. If this level is broken, the Rs 3,000-2,980 zone where it broke out could be tried. On the top side, there is a strong barrier between Rs 3,450 and Rs 3,500.
“The stock seems weak on intraday and daily charts,” said Ravi Singh, vice president and head of research at Share India. Formation and momentum signs point to a weak trend going forward. In the near future, the stock may reach Rs 3,000.
According to Tips2trades’ AR Ramachandran, Eicher Motors is oversold but also bearish and is currently up against resistance at Rs 3,275 on the daily charts. With a daily finish above this resistance, you could buy with a short-term goal of Rs 3,500. The next level of help is at Rs 3,148.”
VLA Ambala, a Research Analyst at Stock Market Today, said, “The stock is most likely to find support at Rs 3,140. If it gets to this point, it would be best to leave. People who own it can think of that level as a stop loss point. The target could be anywhere between Rs 3,285 and Rs 3,400. Both the RSI and the MACD point to the low zone and the bearish zone. So, if you want to buy a new long stake, you should at least wait until the share price trades above Rs 3,255, which may cause short-term bullish sentiment.
In the meantime, benchmarks for Indian stocks reached new ending highs today. The BSE Sensex 30 index finished the day up 340 points, or 0.52 percent, at 65,786, and the NSE Nifty 50 index finished up 99 points, or 0.51 percent, at 19,497.