EICHERMOT - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 3.4

Let’s dig into a technical chart sweep of Eicher Motors Ltd. (EICHERMOT) to spot momentum cues, trade zones, and directional sentiment

📈 Trend Analysis

Current Price: ₹5,470

Slightly below 50 DMA (₹5,506) but above 200 DMA (₹5,209) → suggests neutral consolidation with mild bullish bias

Price is trailing the recent high of ₹5,908, indicating cooldown after a rally

Trend Status: Consolidating with potential for resumption if momentum returns

📊 Momentum Indicators

RSI: 44.8 → Weak territory, signals loss of bullish momentum

MACD: -27.3 → Bearish crossover, reinforces near-term weakness

Volume: 2.18L vs avg 2.99L → Below average, confirming lack of buying strength

This setup hints at hesitation in trend continuation, possibly awaiting macro or sectoral triggers.

📉 Moving Averages Overview

DMA Level (₹) Signal

50 DMA 5,506 Minor resistance overhead

200 DMA 5,209 Reliable support base

Trading in between key moving averages suggests rangebound movement without conviction.

📎 Bollinger Bands Behavior

Price is near the mid-band, implying neutral stance

Bands are narrowing → low volatility zone, typical before breakout or breakdown

📍 Strategic Trade Zones

Zone Type Price Range (₹) Actionable Strategy

Entry Zone ₹5,210–₹5,300 Accumulate near 200 DMA on dips

Resistance ₹5,600–₹5,900 Strong ceiling zone from recent highs

Exit Target ₹5,950–₹6,100 If bullish momentum rebuilds

Support Zone ₹4,950–₹5,050 Must-hold base to prevent trend breakdown

Trailing stop-loss: ₹4,900

🧾 Fundamental & Institutional Lens

Qtr PAT ↑ 27.2% → strong earnings growth

FII Holding ↑ 0.80%, DII ↓ 0.88% → mixed institutional stance

PEG Ratio: 0.77 → attractive growth-adjusted valuation

Debt/equity of 0.02 → extremely clean balance sheet

ROE/ROCE well above industry averages → long-term strength still intact

🧭 Conclusion

EICHERMOT is in a technical pause, with momentum indicators flashing weakness but price action still above structural support levels. Tactical traders may consider accumulating on dips near ₹5,200 for a potential bounce back toward ₹5,900+ if RSI and MACD turn positive. A breakout above the 50 DMA zone with volume could revive short-term bullish bias.

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