Overview
Indian Stock Market whether it is Nifty or Bank Nifty hitting fresh high. but yes, the mid-cap or small-cap indexes are weaker comparatively. So as per our research sector specific correction or gain is going on.
One of the stronger sectors is Automotive. If you check Nifty Auto then you will find it at an all-time high (ATH) of 27400+. It has just given a new break out and many stocks are giving the same breakout of the Automotive sector.
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Stock & Company Details
One of the best stock that given a breakout with good risk reward we have selected to share here. Its name is Eicher Motors.
Eicher Motor Limited founded in 1982, is one of the top contributors in the Indian Automotive industry. It is a top leader in, the mid-weight, motorcycle segment. Its popular name is Royal Enfield. It has a joint venture with Volvo group named Volvo Eicher Commercial Vehicles Ltd (VECVL). This joint venture company mainly deals in Truck and Bus manufacturing.
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Technical Details
We will study the multi-time frame chart and will decide on long-term, medium-term, and short-term targets.
This study can be useful for positional, swing traders, or investors.
Long Term View
Let’s start with monthly price Action as a long-term investment view. Below is the monthly time frame chart.
It has given a breakout of the Ascending triangle and then retested the same level of 4250. As per the above chart, its target for investors can be About 15000 in the coming 2 -3 years. That means a 300% gain or is 3X ( three times) from current price.
Medium Term View
We can predict the medium-term view by Analysing the weekly time frame chart. you can go through below weekly candle time frame chart.
It has created a parallel ascending channel and consolidating on the upper line of the channel. it is a very good sign to consolidate on or above the trend line or channel. Its medium-term target time will be 6 months to 1 years. Its target for medium term will be between 50% TO 100% that is 7500 to 10000.
Short Term View
With the Daily time frame chart and simple resistance line we can study the stock for swing trading.
It has just broken the resistance line so one can enter at the current level of 4990 to 5000. or if, missed can also enter at retest if it comes with a stop loss of 4880. The time frame for short-term or swing trade should be minimum 15 days to 3 months. The target for this will be 20-25% that is 6000 to 6250. so it will be a good risk-reward of 8: 1.
Summary
Now, here we will summarise the aur study conclude. The stock will give a 20-25% return for swing traders or short-term traders. For a medium-term trader, it will give at least a 50% return. For long term investors it can give ,multi bagger returns of 2 to 3 times
Read about company financial reports
Trade Type | Time Frame | Target Price | Stoploss | Target Year |
Short Term | 15 Days to 3 Months | 6000-6250 | 4880 | 2024 |
Medium Term | 6 to 12 Months | 7500-10000 | 4600 | 2025 |
Long Term | 2 to 3Years | 15000-16000 | 4500 | 2028 |
Buy n Forget | Min 10 Years | 30000 | 4200 | 2035 |
FAQ
Is Eicher motor share given breakout?
Yes, It has given a breakout at a 5000 share price.
Is company has good fundamentals?
Yes, company has good fundamentals.
Disclaimer– The views shared here are only for educational purposes. We are not SEBI registered.
Please take advice from your personal finance adviser. We are not responsible for any loss incurred by you with above shared study.
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