Hero moto — large trendHero motor is forming dark cloud cover in the short term (intraday) and has lot of downside in the weekly time frame.
Hero at CMP of 2650 has a lot of downside, given the steel excise-duty (news driven) rally after it's poor quarterly results.
Both their topline and bottom line were hit.
People are not buying hero motor bike; 24% decline in sales.
Net profits (bottom line) was hit by 30%.
Bearish outlook at the current market price, until next results. Results this poor have shown to plummet giants like Target and Amazon by unforeseen amounts.
While steel prices will give them more margin to work with; until sales improve in the next quarter, hero motor price action will explore 2300 levels. Not bullish on this stock until 2300 spot price.
Safe strategy: Sell up to two calls (CE) at spot price 2750 / 2700 / 2650 today, and hold for the rest of the month and eat premium.
