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HERO

Hero news simplifiedHero launched some models in Turkey, and appreciated 8 percent in stock spot price. However, hero motor export figures are next to nothing. Just about 20000 units. Move is disproportionate, sell CE (call option) of 2700s toward 2585(200DMA level), and then 2500. Hero has tried to find solace at 200 DMA, in recent times. Hero stock price is expensive, given this market. Not to mention prices of several other auto nifty movers as well. In other news, Hero is going to raise it's two-wheeler prices by (upto) 3,000/- next month. Increasing product price gives hero less of a price edge over other competitors. Keep in mind Hero sale figures are still lower than pre-covid levels (66% sale figures, or two-months-out-of-three in this quarter are out already—and sales are below pre-covid levels). Demand is down. Hero can rest at 2500, 2350 could be considered a buy price.
NSE:HEROMOTOCOShort
by SwingGun
2
Misleading news regarding increased LIC holding of Hero motorIn total, LIC holds about 11 percent equity in Hero motor, that is correct (up from the earlier 9% approx.) However, this holding increase took place over a period of one-and-a-half years (Jan 2021, to June 2022), and not right now as news reports seem to suggest. This (actual) time frame of 1.5 years over which LIC increased their hero holding is courtesy of Moneycontrol, which is reliable reporting Bearish outlook for Hero motor, target by Goldman Sachs is 2080 . Yes, Goldman Sachs' target is not infallible, but be wary of misleading reporting regarding equity, including—but not limited to, Hero motor. Expect intraday selling tomorrow—2500 seems like a place Hero could rest, tomorrow.
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by SwingGun
Hero motor—Goldman Sachs stance (GS) Goldman Sachs (GS) is underweight on Hero motor, with a target price of 2080 rupees. Given this global selling environment, intraday target (Monday) for Hero motor is 2500, and heading toward 2400. Hero might very well open at 2500 (which is a nice round number)—in which case, wait till it goes to 2600 spot price, before taking bearish position (if you want to be prudent with your trades). Assuming that Hero will settle at 2500 (or 2400) until further sales reports. If you wish to buy in cash market—in the long term, wait till 2300 spot price—or 2100 spot price (if you can wait patiently). This is a very reasonable stance, and not one sided. Semiconductor-supply issues will hurt production and sales, and Hero motor is yet to enter EV segment (hence, hero motor will lose market share over next few quarters).
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by SwingGun
2
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.
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by SwingGun
7
Hero, monthly sales, simplifiedIntraday selling at nifty open, tomorrow. For long term picture, refer to older post. Monthly results are out . Similar to Bajaj Auto, entire two-wheeler segment is hurt. Hero is no different. Semiconductor supply issues in two-wheeler segment. Sourcing semiconductors during shortage will reduce margins as well. We see decline in exports in Hero (as well as Bajaj), but more importantly—Hero motor sales numbers are still well below pre-covid years. When sales are dull, exports are next to nonexistent , and economy is not in good shape, buying would be silly. Generally, my strategy for taking bearish position is selling calls and eating premium, but you can short as well, since we know the sales data. For selling call tomorrow, sell CE at 2800 mark or at 2700 mark in Hero motor. In a way, we know 66% (two thirds) of hero motor's next-quarter result and it's not very exciting. 13.9 percent MoM growth, with further decline in exports. Sales are far from pre-covid levels. Growth outlook is not great. {Note: Bajaj has slightly more reasonable P/E ratio compared to Hero, but I had a bearish position on Bajaj Auto as well; booked that position after result, yesterday.}
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by SwingGun
4
Hero motor: Upside vs DownsideHero motors seen in monthly time frame shows head-and-shoulders pattern with head on top Keeping all viewpoints in mind, Hero motor has upside till 3000/- (given optimistic picture of the economy), which is 200 rupees from here—and downside till 2000/- which is 800 rupees from here, given reducing margins and decline in quarterly sales (24% decline, as seen over last quarter). Risk to reward ratio is 200:800 rupees (1:4) Morgan Stanley and Goldman Sachs are underweight on Hero motor, with similar targets. The 110cc bike sector is under more stress than premium-end automobiles, since inflation hits the common man more.
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by SwingGun
2
Simple Trade Setup | HEROMOTOCO | 23-05-2022 [INTRADAY]NSE:HEROMOTOCO Observations: 1) On 1day time frame, we can see it is near critical breakout level of 2600. If it trades above it then we can aim for the resistance trendline as our target for positional buy trade and if it rejects from here then we can plan as per sell trade but not positional. Please refer below chart : 1day time frame. 2) On 15min Time Frame, we can see a rounding bottom pattern. Please refer below chart : 15min time frame. Also on same time frame we can see a support channel. Please refer below chart : 15min time frame. ------------------------------------- Trade Setup for 23-05-2022 1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action. 2) Everything is mentioned on the chart. I hope it is easy to understand. 3) All the levels will work as support, resistance, entry and exit w.r.t price action near that level. 4) Avoid gap up or gap down chase. Wait and trade between levels. Please refer below chart for levels. Hope I made it easy to understand it. Do comment your doubt or suggestion. Note: Trade with Strict SL. It may or may not hit all the levels. So one can book profit / loss at respective level considering how price action works near that level.
NSE:HEROMOTOCO
by Trading_hawk
HEROMOTOCORP - Channel BreakOut - BullishThe stock was on a downtrend, moving in a parallel channel. It gave a breakout of the channel, suggesting a reversal trend. Trade can be taken if the stock sustains over 2800, which is a resistance zone, for targets of 2900 and 3085. Stop Loss can be maintained at 2740. Please follow us for more trading setups like these. If you have any queries/suggestions related to above pattern, feel free to type below in the comment section. Do show your love by pressing the like if you liked the idea.
NSE:HEROMOTOCOLong
by Yes2Profits
Simple Trade Setup | HEROMOTOCO | 18-08-2021NSE:HEROMOTOCO Observations: 1) On Daily Time Frame, It breakdown 400 DMA 1st time on 29 July and from the next day stock reverses. Yesterday, it closed below 400DMA but today it reverse with powerful candle and closed above 400DMA with good power and volume. Please refer Chart below: Daily time frame. Whenever Stock is at 400DMA it has higher probability to bounce back. ------------------------------------- Trade Setup for Date 18-08-2021: 1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action. 2) Everything is mentioned on the chart. I hope it is easy to understand. 3) All the levels will work as support, resistance, entry and target w.r.t price action working near that level tomorrow. Hope I made it easy to understand it. My personal view is bullish on it. Do comment your doubt or suggestion.
NSE:HEROMOTOCO
by Trading_hawk
4