Analysts suggest 'Buy' for Hero stock

Experts have put 'Buy' rating on the Hero MotoCorp stock with a target price in the range of Rs 3,320-3,380 and the target price being Rs 3,950. The stop loss is put at Rs 3,050 in a time frame of three months, according to an analytical report by ICICI Direct Research group.

As far as the Derivatives and Quantitative Outlook are concerned, broader markets have started outperforming along with the Nifty. Select stocks from the auto sector may witness renewed momentum amid a sustained broader market recovery. Stocks like Hero MotoCorp are likely to perform better in the coming trading sessions along with the ongoing recovery seen in sectoral peers like Bajaj Auto.

The open interest in the stock has been on a declining trend since February 2020 up to October 2020. However, the uptrend in the stock remained intact suggesting short covering. Post that till now it has consolidated and traded in the range of Rs 2,950-3,350 along with significant Open Interest (OI) addition, indicating fresh long accumulation.