HEROMOTOCO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.1

📊 Chart Patterns: Hero MotoCorp is trading right at its 50 DMA (5,778 ₹), showing a key inflection point. The price is comfortably above the 200 DMA (5,080 ₹), indicating medium-term strength. Support lies near 5,700 ₹, while resistance is around 6,000–6,100 ₹.

📈 Moving Averages: The stock is holding above its long-term average, suggesting bullish undertone. Short-term trend is neutral as price hovers near the 50 DMA.

📉 RSI: At 39.4, RSI indicates the stock is approaching oversold territory, hinting at potential rebound opportunities.

📈 MACD: Positive at 26.8, signaling bullish momentum despite RSI weakness. This divergence suggests possible upside continuation.

📊 Bollinger Bands: Price is near the lower band, which often signals a short-term bounce. However, consolidation is visible.

📈 Volume Trends: Current volume (11,35,158) is significantly higher than average weekly volume (7,07,702), showing strong participation and potential accumulation.

📌 Short-term Momentum Signals: Mixed signals — RSI weakness but MACD strength. A breakout above 5,850–5,900 ₹ could trigger momentum toward 6,100 ₹.

🎯 Optimal Entry Zone: 5,700–5,750 ₹ (near support).

🎯 Optimal Exit Zone: 6,050–6,100 ₹ (near resistance).

📈 Trend Status: The stock is trending upward in the medium term but currently consolidating near support.

Positive

• Strong ROCE (31.5%) and ROE (23.8%) reflect excellent operational efficiency.
• Low debt-to-equity ratio (0.01) ensures financial stability.
• Attractive dividend yield of 2.84% supports investor returns.
• EPS of 240 ₹ highlights robust earnings power.

Limitation

• RSI near oversold levels indicates weak short-term momentum.
• DII holding decreased by -1.45%, showing reduced domestic institutional support.
• Stock P/E (24.1) is slightly below industry PE (29.6), but valuation may limit upside compared to peers.

Company Negative News

• Short-term RSI weakness suggests cautious trading.
• Domestic institutional investors reduced holdings (-1.45%), reflecting cautious sentiment.

Company Positive News

• Quarterly PAT improved (1,393 Cr. vs 1,126 Cr.), showing strong earnings growth.
• FII holding increased by 1.71%, signaling foreign investor confidence.
• Quarterly profit variation of 15.7% highlights consistent performance.

Industry

• Industry PE at 29.6 is higher than Hero MotoCorp’s PE (24.1), suggesting relative undervaluation.
• Two-wheeler industry demand remains strong, supported by rural recovery and festive season sales.

Conclusion

⚖️ Hero MotoCorp shows strong fundamentals with high ROCE/ROE, low debt, and rising profits. Technically, the stock is consolidating near support but remains in a medium-term uptrend. Entry is favorable around 5,700–5,750 ₹ with exit near 6,050–6,100 ₹. RSI weakness warrants caution, but MACD and volume strength suggest potential upside continuation.