Eicher Motors’ stock has been exhibiting a bearish bias since the beginning of this year. After declining in January, it was largely oscillating in a broad range since February. But on Wednesday, it marked a fresh six-week low of ₹3,715.35, before closing a little higher. Also, the price action on the daily chart hints at further fall, potentially to ₹3,620 in the near-term. However, there could be a minor corrective rally from here.
Therefore, traders can short the stock of Eicher Motors now at around ₹3,736 and add shorts if the price rises to ₹3,800. Place initial stop-loss at ₹3,840. Move this down to ₹3,750 when the price dips to ₹3,680. Tighten the stop-loss further to ₹3,700 when the stock declines to ₹3,650. Book profits at ₹3,620.
Today’s Stock Recommendation: 14th March 2024
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)