Auto Stocks Outlook
Seen lacking momentum near-term despite strong sales
This story was originally published at 18:28 IST on 19 December 2025
Register to read our real-time news.Informist, Friday, Dec. 19, 2025
NEW DELHI – Shares of Indian automobile companies are currently moving sideways, indicating a lack of near-term momentum despite strong automobile sales during the festival season, analysts said. "The chart setup (for Nifty Auto) signals a continuation of sideways consolidation with higher swing highs and lows," Vatsal Bhuva, a derivatives and technical analyst at LKP Securities, said.
Friday, the Nifty Auto closed 1.2% higher at 27657.25 points. For the week, the index closed 0.6% lower, a tad worse than the benchmark Nifty 50, which closed 0.3% lower. Nifty Auto fell for the second consecutive week following four consecutive weeks of gains.
"In Friday's session, it (Nifty Auto) managed a decisive close above its 50-day SMA (simple moving average) and settled near its 20-day SMA, indicating some improvement in price structure," Bhuva said. "However, the RSI (relative strength index) is yet to enter a bullish crossover and is forming lower tops, suggesting a lack of strong momentum," he said.
The index closed near its resistance level of 27700 points on Friday, which means that a sustained move above this level could mean a gain of another 300 points, the technical analyst said. Support for the sectoral index is seen at 27250 points.
The performance of automobile stocks this year was strong, which reflects the effect of the goods and services tax cut, which led to a sharp re-rating in their multiples, Kotak Securities said in a report Friday. Rating agency ICRA expects wholesale volumes of passenger vehicles in the current financial year to be 1-4%, supported by steady demand, GST cuts, new model launches, and sustained momentum.
Automobile stocks rose around 17% in 2025, Kotak Securities said, behind only metal stocks, which gained a little over 20%. "We assume stable margins and profitability for the auto companies in FY2026 (2025-26) and modest improvement in FY2027," Kotak said.
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* SC ends relief to BS-III overage vehicles from coercive action in Delhi-NCR
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* Ola Electric promoter Bhavish Aggarwal's stake sale aimed at debt repayment
* Ola Electric promoter Bhavish Aggarwal sells 0.6% stake for near INR 919 mln
* Ola Electric launches Hyperdelivery for 4680 Bharat Cell EVs in Bengaluru
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % |
Resistance | Support |
| APOLLO TYRES LTD | 507.05 | (-)0.60 | 526.70 | 481.20 |
| ASHOK LEYLAND LTD | 173.56 | 5.90 | 176.80 | 169.10 |
| BAJAJ AUTO LTD | 9002.00 | (-)0.10 | 9130.70 | 8762.70 |
| BALKRISHNA INDUSTRIES LTD | 2365.40 | 0.70 | 2403.80 | 2328.80 |
| BHARAT FORGE LTD | 1439.90 | 0.90 | 1469.90 | 1385.50 |
| BOSCH LTD | 35940.00 | (-)2.10 | 36630.00 | 35270.00 |
| EICHER MOTORS LTD | 7217.00 | (-)0.20 | 7345.00 | 7011.00 |
| EXIDE INDUSTRIES LTD | 363.25 | (-)2.80 | 367.70 | 355.80 |
| HERO MOTOCORP LTD | 5781.00 | (-)3.00 | 5840.30 | 5695.30 |
| MAHINDRA & MAHINDRA LTD | 3603.60 | (-)2.10 | 3647.90 | 3537.90 |
| MARUTI SUZUKI INDIA LTD | 16414.00 | (-)0.70 | 16552.00 | 16260.00 |
| MRF LTD | 153580.00 | 0.70 | 156866.70 | 150616.70 |
| SAMVARDHANA MOTHERSON INTERNATIONAL LTD | 120.98 | (-)0.30 | 123.80 | 115.80 |
| TATA MOTORS LTD | 394.35 | 5.60 | 412.40 | 376.30 |
| TATA MOTORS PASSENGER VEHICLES LTD | 352.65 | 1.50 | 359.30 | 343.70 |
| TVS MOTOR COMPANY LTD | 3666.00 | 0.30 | 3726.70 | 3561.90 |
| NIFTY AUTO | 27657.25 | (-)0.60 | 27954.60 | 27131.80 |
| NIFTY 50 | 25966.40 | (-)0.30 | 26059.60 | 25833.80 |
| BSE SENSEX | 84929.36 | (-)0.40 | 85243.10 | 84578.10 |
End
Reported by Anand JC
Edited by Saji George Titus
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