Trade Idea of The Day - Eicher Motors Ltd Target Rs.220 - Religare Broking Ltd
Eicher Motors Ltd
BUY 28 APR 7200 PUT Eicher Motors Ltd Entry Range 138-146 Target Range 220 Stop Loss 100
Rationale
* On the daily chart EICHERMOT has formed a strong pivot near the 7000 mark, taking support around its short-term moving average, indicating the emergence of buying interest at lower levels.
* On the technical front prices are stabilizing above the 20-DEMA, suggesting a shift in near-term momentum, while sustained trading above this level may trigger further upside.
* Momentum indicators are gradually improving, with RSI inching above the 50 mark and MACD showing signs of a positive crossover, supporting the bullish bias.
* For the near term, prices are expected to inches higher towards the 7400–7500 zone, so that on the derivative front one can consider a buying in the ATM call option with a strict stop loss to manage downside risk.
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