Auto Stocks Outlook
May consolidate next wk; profit booking likely
This story was originally published at 06:00 IST on 20 July 2024
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MUMBAI - The Nifty Auto index may continue to consolidate next week, as investors are expected to continue booking profits ahead of the Union Budget for 2024-25 (Apr-Mar) and earnings of major manufacturers, according to analysts. This week, the Nifty Auto index closed 0.7% lower at 24963.35, with 13 constituents--of the total 16--ending lower on a week-on-week basis.
Exide Industries and Bosch were the top losers this week, while Mahindra & Mahindra and Apollo Tyres were among the top gainers. Compared with the auto index, both the benchmark Nifty 50 and Sensex ended 0.1% higher on a week-on-week basis at 24530.90 and 80,604.65, respectively.
"The auto index has consolidated in a narrow range in the last one month, but this consolidation was so far above its 20-day moving average support. In today's trading session, the index breached the trading support which indicates the possibility of a corrective phase in the near term," said Ruchit Jain, a lead analyst at 5paisa.
The auto stocks have seen a good run-up in the last one year. However, against the backdrop of reports of rising inventory with dealers, and price cut announcements by some car manufacturers, there could be some profit booking in this space, said an analyst at a domestic brokerage. Next week, immediate support for the auto index is seen at 24500 points and resistance at 25800 points.
TOP HEADLINES
* Maruti Suzuki says production briefly halted due to IT outage
* CIE Automotive Apr-Jun consol PAT falls 28.1% YoY, sales down 1.2%
* Royal Enfield launches Guerrilla 450 in India at 239,000 rupees
* Ashok Leyland arm to buy TECOSIM for enterprise value 21 mln euros
* Earnings Review: Bajaj Auto PAT up 19% YoY, beats Street estimate
* Bajaj Auto fires on all cylinders in Apr-Jun, beats Street view
* Earnings Outlook: Price hikes, low input costs to aid Eicher Motors
* Earnings Outlook: TVS Motor to shine in Apr-Jun on higher volumes
* Equity Futures: Bajaj Auto calls bought ahead of likely-strong result
* Ashok Leyland bags 9.8-bln-rupee order to provide buses to Maharashtra
* Earnings Outlook: Volume growth, low input costs to aid Bajaj Auto
* Good monsoon, festive demand to aid auto sales in FY25, says SIAM
* Data Alert: Two- and three-wheelers drive India vehicle sales in June
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
|---|---|---|---|---|
| Ashok Leyland | 223.95 | (-)0.10 | 231.10 | 219.50 |
| Bajaj Auto | 9386.05 | (-)0.50 | 9802.00 | 9132.00 |
| Eicher Motors | 4850.70 | (-)0.20 | 4970.10 | 4760.50 |
| Hero MotoCorp | 5427.70 | (-)2.20 | 5598.90 | 5285.40 |
| Mahindra & Mahindra | 2749.30 | 1.70 | 2847.70 | 2693.80 |
| Maruti Suzuki India | 12524.30 | (-)0.30 | 12790.50 | 12363.40 |
| Tata Motors | 990.00 | (-)2.60 | 1037.60 | 962.90 |
| TVS Motor Co | 2404.55 | (-)1.40 | 2445.10 | 2349.70 |
| Nifty Auto | 24963.35 | (-)0.70 | 25798.80 | 24513.50 |
| Nifty 50 | 24530.90 | 0.10 | 24977.90 | 24284.60 |
| S&P BSE Sensex | 80604.65 | 0.10 | 81985.80 | 79808.50 |
End
Reported by Darshan Nakhwa
Edited by Tanima Banerjee
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