Shares of major automobile companies, including Hero MotoCorp Ltd and Eicher Motors Ltd, experienced significant selling pressure in Wednesday's trading session. The downturn, which saw the Nifty Auto sub-index decline by 1.79 percent, came as investors assessed the sector's August sales and dispatch data.
Hero MotoCorp shares settled 4.59 percent lower at Rs 5,300 on the NSE, while Eicher Motors saw a 3.24 percent drop, closing at Rs 7,711.50. The broader market reaction stemmed from a review of August's automotive sales figures, which indicated a decline in export dispatches despite relatively resilient domestic demand.
Eicher Motors Faces Pullback, Consolidation Expected
Market Analyst Mayank Jain of Share.Market by PhonePe noted that Eicher Motors experienced a sharp single-day pullback after encountering technical resistance near the psychological Rs 8,200 level. Jain's analysis suggests a higher probability of price consolidation.
- Support Levels: Rs 7,365 – Rs 7,740
- Outlook: Consolidation within this range is more likely than an immediate trend reversal.
Jain emphasized that market participants would closely monitor buyer interest around these key support levels to assess the potential for a resumption in upward momentum.
Hero MotoCorp Under Selling Pressure, Range-Bound Movement Anticipated
For Hero MotoCorp, Jain highlighted notable selling pressure after the stock faced strong resistance around the Rs 6,000 zone. The analyst anticipates a period of sideways, range-bound movement for the two-wheeler giant.
- Key Support Floor: Rs 5,000
- Overhead Resistance Zone: Rs 5,500
- Critical Support Band: Rs 4,800 – Rs 5,000
Investors will be watching whether the Rs 4,800–5,000 support band holds, which would provide a crucial reference point for evaluating price stability and any subsequent upward trajectory.
“The probability currently favours a period of sideways, range-bound movement between the Rs 5,000 key support floor and the Rs 5,500 overhead resistance zone,” said Mayank Jain regarding Hero MotoCorp.
The overall sentiment in the auto sector reflects investor caution as companies navigate evolving market dynamics and demand patterns following the August sales data.