Hero Motors - 11-Oct-2011

An Update:
Hero Moto Corp - 1 Year Daily Chart

19-Oct-2011 Update: Much awaited Bounce in Hero Moto Corp has come the day after the results & it closed 4% up from the previous close. From the charts its still got steam to move further but as NIFTY is at crucial resistance & RBI meet round the corner its safe to take the profits. Hence from me the Trading Idea is closed with roughly 7 to 8% profit in a week :-) 

Post of 11th October 2011 is as below:

Hero Motors - Correction Over?

Hero Motors (erstwhile Hero Honda), has had a good run up till 2200 levels & corrected approximately 12% from the top. Now after correction & a brief consolidation. Its ready to resume towards its uptrend. 
Stock has taken support at 38.2% Retracement levels of 1905-1910 (The move from 1375 to 2237)

Hero Motors - 1 Year Daily Chart

Hero Motors - 1 Year Daily Chart - Fibonacci Retracement Levels

Immediate resistance is at 50 D SMA = 1997. One can buy above 1997-2000 levels and keep holding it, till its above 50 D SMA. Stock would become stronger once it crosses its 20 D SMA (Currently it's at 2054, but falling at a brisk pace).

Indicators: 

MACD is about to turn into Buy Mode (Once the crossover happens)

Slow Stochastics is in buy mode.

RSI is at 44 levels & pointing upwards.

Bottom Line: Keep a close watch on this stock as it's low beta stock & can give steady returns for both Traders & Investors.

Market Snippets: Stock is considered to be in Strong Uptrend when the Price is above the moving averages. And the shorter term moving averages are above than longer term moving averages.

*SMA - Simple Moving Average