Hero Honda

We recommend a buy in Hero Honda Motors at current price. The stock has been on a medium-term uptrend since April 2007 low of Rs 565. In the short-term also, the stock has been in an uptrend from the support level of Rs 660. The stock’s current up move has penetrated the long-term moving average line (200-day) and the medium-term moving average line (50-day), which is signifying beginning of a rally. On November 29, the stock displayed additional strength by gaining more than 3 per cent, accompanied by strong volumes. The weekly moving average convergence divergence is currently featuring in the positive region. The daily momentum indicator is on the verge of entering the bullish region. We note that the immediate support for the stock is at Rs 660 and the next support is at Rs 620. We expect the stock’s current up move to continue up to Rs 820 in the short-term, with minor pause around Rs 790. Short-term investors can buy the stock at current price with stop-loss at Rs 693.

Via Businessline