Technical Trend Evolution and Moving Averages
The technical trend for Hero MotoCorp has recently upgraded from mildly bullish to bullish, reflecting an improvement in price action and momentum. The daily moving averages have turned decisively bullish, with the stock currently trading at ₹5,995.90, up 1.10% from the previous close of ₹5,930.60. The stock’s intraday high reached ₹6,044.65, approaching its 52-week high of ₹6,390.00, signalling strong upward momentum.
Moving averages, particularly the 50-day and 200-day, have shown a positive crossover in recent weeks, which is a classic bullish indicator. This crossover often signals the beginning of a sustained uptrend, attracting technical traders and momentum investors alike. The daily moving averages’ bullish stance aligns with the broader technical upgrade, reinforcing confidence in the stock’s near-term trajectory.
MACD and Momentum Oscillators
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bearish, indicating some short-term caution among traders. However, the monthly MACD has turned bullish, suggesting that the longer-term momentum is gaining strength. This divergence between weekly and monthly MACD readings often precedes a more sustained rally once the weekly indicator aligns with the monthly trend.
Meanwhile, the Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This suggests that the stock is neither overbought nor oversold, providing room for further upward movement without immediate risk of a technical pullback. The absence of RSI extremes supports the view that Hero MotoCorp’s price momentum can continue to build steadily.
Bollinger Bands and Volatility Insights
Bollinger Bands on both weekly and monthly timeframes are signalling bullish momentum. The stock price has been consistently touching or moving above the upper band, which is indicative of strong buying pressure and expanding volatility. This pattern often precedes continued price appreciation, as it reflects investor enthusiasm and a willingness to pay premium prices for the stock.
Such bullish Bollinger Band behaviour, combined with the positive moving averages and improving MACD, paints a compelling picture of a stock poised for further gains. Investors should, however, remain vigilant for any signs of volatility contraction or reversal patterns that could temper the rally.
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Additional Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator presents a mixed view. On a weekly basis, it remains mildly bearish, signalling some short-term hesitation. However, the monthly KST is bullish, reinforcing the longer-term positive momentum narrative. This divergence suggests that while short-term traders may exercise caution, the broader trend favours accumulation.
Dow Theory assessments show a mildly bullish weekly trend but no clear trend on the monthly scale. This indicates that while the stock is gaining traction in the near term, the monthly trend is yet to confirm a definitive directional bias. On Balance Volume (OBV) readings show no clear trend on either weekly or monthly charts, implying that volume-based confirmation of price moves remains inconclusive for now.
Comparative Performance and Market Context
Hero MotoCorp’s recent price momentum is further validated by its impressive returns relative to the Sensex. Over the past week, the stock surged 7.74%, vastly outperforming the Sensex’s 0.88% gain. Despite a 5.60% decline over the past month, the stock has outpaced the benchmark over longer periods, delivering a 41.31% return year-to-date compared to the Sensex’s 0.26%.
Over one year, Hero MotoCorp has delivered a remarkable 41.31% return, significantly higher than the Sensex’s 7.85%. Its three-year and five-year returns stand at 116.68% and 95.48% respectively, both substantially outperforming the Sensex’s 41.57% and 76.39%. Even over a decade, the stock has delivered a strong 128.76% return, though this trails the Sensex’s 234.01% over the same period.
This relative outperformance highlights Hero MotoCorp’s resilience and growth potential within the automobile sector, supported by improving technical indicators and a favourable market environment.
Mojo Score Upgrade and Market Capitalisation Insights
Reflecting these positive developments, Hero MotoCorp’s Mojo Score has been upgraded to 85.0, earning a Strong Buy grade as of 5 January 2026, up from a previous Buy rating. This upgrade underscores the stock’s enhanced technical and fundamental appeal. The company holds a Market Cap Grade of 2, indicating a mid-cap status with considerable growth prospects.
Such a rating upgrade from MarketsMOJO is significant, signalling increased confidence from market analysts and technical experts. It also places Hero MotoCorp favourably within thematic lists and sectoral comparisons, making it an attractive proposition for investors seeking exposure to the automobile industry’s growth trajectory.
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Investor Takeaway and Outlook
In summary, Hero MotoCorp Ltd. is exhibiting a clear shift towards stronger bullish momentum, supported by a confluence of technical indicators. The daily moving averages’ bullish crossover, monthly MACD positivity, and bullish Bollinger Bands collectively suggest that the stock is well-positioned for further appreciation.
While some weekly indicators such as MACD and KST remain mildly bearish, these are likely short-term fluctuations within a broader uptrend. The neutral RSI readings provide additional comfort that the stock is not yet overextended, allowing room for continued gains.
Investors should consider Hero MotoCorp’s strong relative performance against the Sensex and its recent Mojo Score upgrade as affirmations of its growth potential. However, prudent monitoring of volume trends and Dow Theory signals is advisable to confirm sustained momentum.
Overall, the technical landscape for Hero MotoCorp supports a bullish outlook, making it a compelling candidate for investors seeking exposure to the automobile sector’s recovery and growth in 2026.
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