Today's Opening - 3174
Today's High - 3205
Today's Low - 3034
Today's Closing - 3108
I am writing on this stock for the first time ever.
Today is consecutively the fourth day of negative closing with the last two days' volumes being more than four times the volumes of the last 30 days' average.
The stock has been closing below the 5-day Exponential Moving Average since 11th June.
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| Hero MotoCorp 5-day EMA Trend for 90 Days |
The 14-day Negative Directional Index has been stronger than the Positive Directional Index since 19th June.
The 20-day Commodity Channel Index has been negative since 22nd June and it has dropped below -300 over the last two days.
The 12, 26-day Moving Average Convergence Divergence has been negative since 26th June. The 2-day Relative Strength Index value has dropped below 30 over the last two days.
Domestic sales of Hero MotoCorp grew by 14% year-on-year while the exports grew by 9% during the same period. Half of the company's volumes come from the budget-category bikes such as Splendor, HF Dawn and Passion. With good monsoon expected and therefore anticipation of a recovery in the rural demand should have been a big positive for the company. However, loss in market share (down to 37.67% in April-June 2018-19 versus 38.5% during the same period last year) owing to lower volumes from the entry-level bike segment (HF Dawn model) is hurting the company.
This apart, the other high growth segment of scooters continues to remain a problem for the company as its domestic scooter sales fell by 10% on an year-on-year basis. Scooters have a more than one-third share of the entire two-wheeler market.
The stock has lost almost 11% over the past one week and is showing no signs of a recovery. Even though the support level of 3072 was broken during the day, the stock managed to pull back from the low by the end of today's trading session. In case 3072 gets broken decisively, the stock might further come down to 2958. Keep buying on dips with a long term perspective.
This apart, the other high growth segment of scooters continues to remain a problem for the company as its domestic scooter sales fell by 10% on an year-on-year basis. Scooters have a more than one-third share of the entire two-wheeler market.
The stock has lost almost 11% over the past one week and is showing no signs of a recovery. Even though the support level of 3072 was broken during the day, the stock managed to pull back from the low by the end of today's trading session. In case 3072 gets broken decisively, the stock might further come down to 2958. Keep buying on dips with a long term perspective.
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