Should You Sell or Hold Hero MotoCorp? An SEO-Optimized Guide
To many investors, deciding whether to sell or hold onto stocks can be a difficult task. This article focuses on whether it's wise to sell your 40 shares of Hero MotoCorp at Rs 2510. We'll consider recent market news, current price dynamics, and expert analysis to help you make an informed decision.
Recent News and Market Trends
A recent piece of news from Morgan Stanley has downgraded Hero MotoCorp's rating to Rs 2400. This downgrade is fueled by the company's entry into the electric vehicle (EV) market, specifically through its collaboration with OLA.
Currently, the stock price sits at 2920, which is expected to reach back to the 3550 range. However, to make any profit based on your buying price, it might take a considerable time, potentially years. Given this scenario, my recommendation would be to sell 30 of your 40 shares and hold onto 10 while exploring other investment opportunities, such as metals stocks, which still present growth potential.
Past Performance and Future Outlook
As of July 9th, when writing this answer, Hero MotoCorp is trading at 2675. Over the past few years, the stock has experienced a steep bullish trend, starting at 1475 in March 2020 and reaching a price range above 15-SMA on a daily chart. The support level of 15-SMA on a weekly chart is currently placed at 2215-2220.
The immediate resistance for the stock is around 3016-3022, reflecting the high from mid-November 2019. The Relative Strength Index (RSI) on the chart indicates a range of 65-70, suggesting a price correction might occur but is expected to bounce back. Therefore, holding your position with a corrective stop loss above the resistance is recommended.
Historical Performance of Hero Honda Stock
Hero Honda stock has witnessed a significant increase, rising from a low of Rs 1500 to almost Rs 3000 in just under four months. The stock faced resistance around 2400-2500 levels, which were decisively broken on a weekly basis, allowing the stock to trade above these levels.
As long as the stock price remains above Rs 2500, there's potential for further upward movement. Key resistance levels include Rs 3000/3400, and if these levels are broken, the stock could easily exceed its previous highs. Considering this, it is more advisable to hold onto your shares rather than sell them. However, exit or sell only if the stock closes below Rs 2500 on a weekly basis.
Conclusion, the decision to sell or hold Hero MotoCorp shares should be made carefully, taking into account recent market news, current price trends, and expert analysis. The key is to remain patient and strategic, making informed decisions based on the latest market dynamics and analysis.