Short Hero Motocorp around Rs 1650: Homavazir

Regan Homavazir, Associate VP-Technical Research, Darashaw advises to go short in Hero Motocorp around Rs 1650.
 
Homavazir told CNBC-TV18, “As far as the auto sector is concerned, there is a mix bag. If we look at Hero Motocorp, it has done something very significant on the long-term charts. It has become a long-term short.”
 
He further added, “Now, a pullback is obviously warranted considering the steepness of the fall that it has had. So, at about Rs 1,650 onwards you will have to start lightening up any long positions and start looking at it going short. That downsides in Hero Motocorp are limited to Rs 1,300 currently but below that it could become a triple digit stock.”
 
“Maruti Suzuki India is one stock which has met its worst case scenario. It is at a scenario where it should be bought. It is a stock that needs to be invested in at the current price point and you will have to start looking at the stock trading at about Rs 1,550 and upwards. So, Maruti Suzuki India is one among the stocks that one could switch their entire Hero Motocorp position or Tata Motors position. The next stock in the list would be Mahindra and Mahindra (M&M). It is a relatively stronger stock. So, M&M and Maruti Suzuki India could be ranked together.”