Trade Idea of The Day - Eicher Motors Ltd Target Rs.100 - Religare Broking Ltd
Eicher Motors Ltd
BUY 30 MAR 6900 CALL SELL 30 MAR 7000 CALL Eicher Motors Ltd Entry Range 40 – 45 Target Range 100 Stop Loss 25
Rationale
* On the weekly chart EICHERMOTOR has shown a strong rebound from its key support zone, which has aligned with the 50-WEMA, indicating a solid long-term base and renewed buying interest at lower levels.
* On the technical front prices suggests a potential bullish reversal formation after the recent correction, signalling exhaustion of selling pressure and a likely shift in short-term momentum.
* 14-day RSI hovering above the lower range of 40, hinting at near term reversal due to oversold scenario, while MACD shows signs of consolidation, supporting a gradual upside recovery.
* Overall structure remains bullish on the broader timeframe and any dip towards support zones can be utilized as a buying opportunity for a move towards higher resistance levels.
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