Trade Idea of The Day - Eicher Motors Limited Target Rs.320 - Religare Broking Ltd
Eicher Motors Limited
Eicher Motors Limited BUY 26 MAY 7300 CALL Entry Range 220-230 Target Range 320 Stop Loss 175
Rationale
• On the daily timeframe EICHER has trading above its key moving averages of 20-DEMA and 50-DEMA, indicating sustained short-term strength and a positive trend bias.
• From the technical prospect, the ongoing pattern of higher highs and higher lows reflects a continuation of the broader uptrend, suggesting buying interest on dips.
• 14-day RSI is hovering around near the 60 mark, while the MACD has witnessed a bullish crossover and is gradually moving higher, confirming strengthening upside momentum.
• On the derivative front one can consider buying the ATM call option of 7300 with a buy-on-dips approach near the 7280-7250 zone. The setup favours a gradual upside towards 7450-7500 zone.
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SEBI Registration number is INZ00017433
