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EICHERMOTORS REVIEW : (Next buy on radar)

May millions of lamps illuminate your life with joy, prosperity, health and wealth forever. Wishing you and your family a very Happy Diwali 2020

Today on the occasion of Diwali, I am reviewing the chart of #EIcherMotors which has already turned to be multibagger stock since its listing. Company has delivered a strong return to his share holders in last 30 years. Just have a look below on chart to understand its journey from Rs 10 to Rs 2514 (Splits and dividends not counted in)

From the above chart one can see that from 1999 to 2020, stock appreciated almost #32667.59% in jus period of 30 years. Now let us understand the profit delivered n terms of Rupees

Amount invested : 10000 in 1999

No of shares you would have allotted 10000 / 10 = 1000

Share price today : 2514

Todays value in Rs = No of shares you hold x Current price of stock ( 1000 * 2514 ) = 25lacs (dividends and bonus extra)

Now lets add bonus (splits) into it

Stock split carried from FV 10 to 1. means for every share you hold, you got now 10 shares.

Now shares in hand as on date is 10000 (1000 shares converted into 10000)

Real value of your shares now becomes 10000 x 2514 (CMP) = Rs 2,50,00,000

will you get such kind of return in any other asset ? definitely not.

Monday we will be planning to buy this stock, Let us understand now via charts once again.

Price has shown #PPV pattern

No 1 Price : Price action is supporting very well as stock started making higher highs and higher lows. price trading well above its 200 MA

No 2 Pattern : Pattern is my all time favorite Cup and handle and if some is familear with head and shoulder that is also visible, for me cup and handle is sufficent to get into the stock

No 3 Volumes : Volumes continuously increasing and most important, breakout happened with strong volumes on weekly charts.

Do I need to know anything else, definitely yes, one should also look at fundamentals.

I would buying this stock on Monday or Tuesday if weekly high is broken.

I hope you liked the above setup,

Happy Diwali


Above is purely our analysis and in no way its an recommendation to buy

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