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Maruti, M&M, Bajaj Auto: Are auto stocks a good bet at the current levels?

Automobile Industry
Nifty Auto: The 9500 mark has been very significant point for the index. The moment Nifty Auto index broke this level on the downside, there was heavy selling pressure. The damage has already been done and every rise in the index is being met with resistance. Every consolidation, as per the daily chart, led to a breakdown hurting sentiment generating a sense of bearishness. Till the recent low of 7,821 holds, one can expect some positive bias. That said, the bounce could be short-lived. CLICK HERE FOR DETAILED CHART VIEW

Bajaj Auto Ltd (BAJAJ AUTO): This is the only stock that is showing positive bias on the trend-line breakout and 'double bottom' as per the weekly chart. It is well positioned above 200-days moving average (DMA) with a 'Golden Cross'. Although, the speed at which it should have risen has slowed due to lack of buying volumes; however, the upward trend still remains intact. The support stays at Rs 2,880 levels, which also is its 100-DMA. The immediate resistance comes in at Rs 3,200 and Rs 3,400 levels. CLICK HERE FOR DETAILED CHART VIEW

 

Mahindra & Mahindra Ltd (M&M): The overall trend indicates weakness. Bearishness may emerge if Rs 700 level is not conquered soon. The stock is finding difficult to cross Rs 665 (its 100 DMA) decisively that could have helped change the downward trend for a short while. Rs 615 stay as immediate support level, which if broken, may lead to Rs 580 level on the downside. CLICK HERE FOR DETAILED CHART VIEW

Hero MotoCorp (HEROMOTOCO): The stock has seen a strong reversal from mid-May 2019. However, the counter needs to conquer its 200-DMA convincingly to give a breakout. It did cross the 200-DMA in December 2018, but failed to get a follow-up buying. As per the current trend, 100 DMA (Rs 2,680) and 50 DMA (Rs 2,615) stay as support levels with a strong resistance of 200 DMA at Rs 2,845. Only after conquering Rs 2,845 levels, one can expect a rally towards Rs 3,260. MACD (Moving average convergence and divergence) is positioned well above zero line, which is a sign of a positive trend. CLICK HERE FOR DETAILED CHART VIEW

 

Maruti Suzuki India (MARUTI): Maruti is consolidating in the range of Rs 6,400 to Rs 7,550 and waiting for a breakout. It has always seen buying momentum near 200–weekly moving average - currently placed at Rs 6,540 level. There is a positive bias as per the chart, which indicates a further upside till the counter trades above Rs 6,700 level. It may head towards Rs 7,377 levels going ahead, which also is its 200 DMA. MACD has crossed zero line five sessions earlier, suggesting a positive move is likely going ahead. CLICK HERE FOR DETAILED CHART VIEW

 

Tata Motors Ltd (TATAMOTORS):  The support levels are getting weak and shifting lower instead of rising upward. Currently, the stock is trading below all the major moving averages 50-DMA, 100-DMA, and 200-DMA. Traders and investors need to be cautious and look for opportunities only when it rises above Rs 196 level.  CLICK HERE FOR DETAILED CHART VIEW

 



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