My Trading Strategy for Hero MotoCorp, Godrej Consumer, SBI and Nifty MidCap

Greetings everyone!

In today’s analysis, I will take a look at Hero MotoCorp, Godrej Consumer (NS:GOCP), State Bank of India (NS:SBI), and the Nifty Midcap. However, I will look at Hero Motocorp (NS:HROM) and Godrej Consumer in the article. While I will look at SBI and Nifty MidCap via a YouTube video shared below. Moreover, in the YouTube video, I have also taken a look at the key market events for the week ahead.

Now coming to Godrej Consumer. To understand Godrej Consumer’s future price trajectory, we ought to pay attention to the price bar of March 19th, 2024. This is as this particular price bar is noteworthy, as it is the only one in the past three weeks that had a significant bearish volume behind it. Hence, a breakout above it will suggest smooth sailing ahead. Thus, once we take out the high of ₹1,255, then this will open the door for a fresh uptrend in the short and medium term.

How would I approach trading this stock? If the stock were to break above the resistance level of ₹1,255, then this would trigger a short-term rise to ₹1,290 and ₹1,350. Moreover, if the equity can break above the resistance level of ₹1,350, then this would pave the way for a more substantial medium-term uptrend.

Now coming to Hero Motocorp. This week will be a significant one for all auto stocks as the data for March will be out. However, since that data is unknown. Thus, we will take a look at the chart to see what is known. Now, when we look at the daily chart of Hero Motorcorp, it is evident that the stock is bullish. Therefore, if the equity breaks above the resistance zone between ₹4,760 and ₹4,820, then this could propel the stock to the resistance zones at ₹5,050 and ₹5,300.

Coming to my trading strategy for it. I currently hold the equity with an entry price of ₹4,460 and have a tight profit stop to ensure that I lock in the profits made so far. Now if the stock were to break above the resistance level at ₹4,820, then I’ll maintain my position until it reaches the price targets mentioned earlier. However, if it struggles at this crucial level, then I’d prefer to sell and secure the quick 7-8% profit made within a week. I will do this as a stall at ₹4,820 could trap the stock in a frustrating range-bound phase, which wouldn’t be the best use of my capital.

In summary, both stocks have promising potential. Therefore, if they overcome their respective resistance levels, then traders can earn a decent level of return within a short time frame. Lastly, do not forget to check out the linked YouTube video below for an analysis of the market’s performance for the upcoming week, along with insights on the Nifty Midcap and SBI. This is as, by combining this analysis with the video’s broader market outlook, you’ll be well-equipped to make informed investment decisions.

Happy trading. 

Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgement before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.