Auto Index Nears Breakdown: Hero Motocorp a Top Short Pick

◉ Auto Sector Overview CNXAUTO
● The auto sector has recently experienced significant selling pressure, driving the index to hover just above its key support level at 22,000.
● However, there are concerns that this support level may not hold for long, potentially leading to a breakdown and continuation of the downtrend.

In light of this scenario, short positions in select stocks within the sector could present a viable trading opportunity.

◉ Hero Motocorp Technical Analysis HEROMOTOCO
● On the weekly chart, Hero Motocorp has formed a Head & Shoulders pattern, a classic bearish reversal signal.
● The price has recently breached the neckline of this pattern, indicating a potential for further downside movement. This breach reinforces the bearish outlook for the stock.

◉ OI Data Analysis
● Open interest data shows a buildup of new short positions during recent trading sessions, further supporting the bearish sentiment.
● Additionally, the option chain data highlights a significant concentration of put writers at the 3900 level.
● With this level now breached, the stock is expected to maintain its negative momentum, potentially leading to further declines.