INSUBCONTINENT EXCLUSIVE:
Aditya Agarwala of YES Securities has a buy call on Eicher Motors with a target price of Rs 25,450.
The current market price of Eicher
Time period given by the analyst is two weeks when Eicher Motors price can reach the defined target
Aditya Agarwala recommended keeping a stop loss at Rs 20,700.
"On the weekly chart, Eicher Motors is on the verge of a breakout from a
sideways consolidation pattern placed at Rs 21,900
Sustained trade above Rs 21,900 will trigger a bullish breakout which may extend to levels of Rs 23,800-25,450
It has also formed a bullish harmonic pattern, indicating that the downtrend is losing steam which can lead to the start of a fresh bull
Moreover, the correction in the stock took the shape of a 5-wave correction and has completed the 5th corrective wave, indicating that the
downtrend can be arrested soon
RSI has also turned upwards after taking support at the lower end of the bull zone i.e
40-level and has formed a positive reversal on the daily chart, suggesting bullishness in the stock," said Agarwala.
Eicher Motors,
incorporated in the year 1982, is a largecap company (having a market cap of Rs 59,656 crore) operating in the auto sector.
