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Informist, Friday, Jan. 23, 2026

NEW DELHI – Automobile company shares are expected to face downward pressure in the coming weeks, with the Nifty Auto index having retraced nearly 50% from the breakout zone, a Mumbai-based technical analyst said. The index mirrored losses in the wider market this week and closed in the red for the third consecutive week.

Friday, the Nifty Auto index closed 1.1% lower at 26804.55 points. For the week, the index shed 2.9%, slightly worse than the benchmark Nifty 50, which fell 2.5%. Barring Ashok Leyland, the other 14 companies on the index closed lower during the week. Ashok Leyland rose nearly 5% during the week, while Tube Investments, Exide Industries, and Samvardhana Motherson International fell over 5% each.

Ashok Leyland, which holds a 31% market share in the medium- and heavy-duty commercial vehicle segment, is expected to be among the biggest beneficiaries of the recent upturn in the commercial vehicle cycle, analysts said. Nomura said it expects the Indian medium- and heavy-commercial vehicle industry, which has grown moderately in the past few years, to experience renewed momentum and deliver 8% growth in 2025-26 (Apr-Mar) and 10% in FY27 compared with 4%-5% earlier. 

As for the Nifty Auto index, the overall chart structure is currently weak and the corrective phase may extend further, Vatsal Bhuva, a technical and derivatives analyst at LKP Securities, said. "The RSI (relative strength index) is at 33, indicating strong downward momentum, with further room before the index enters the oversold zone. In such a scenario, the index may also test the 61.8% Fibonacci retracement level around 26,050, measured from the breakout base to the recent high of 29,120," Bhuva said. Immediate support for the index is seen at around 25,600 points.

India is currently in talks to finalise a trade pact with the European Union. Ursula von der Leyen, the President of the European Commission, said earlier this week that the 27-member bloc is "on the cusp" of signing the trade agreement, calling it the "mother of all deals".

Analysts believe a potential trade deal with the European Union would benefit auto components companies. "Auto component imports from the EU are 7-8% of India's total auto component industry, and the bulk of these import categories are being taxed at around 10-15%. Hence, we believe that a favourable outcome, that is, existing duties are waived off, would be positive for margins of OEMs (original equipment manufacturers)," Emkay Global Finance said in a note on Friday.

The market will also track the December quarter earnings of automobile firms, which are expected to grow following the cut in goods and services tax. Maruti Suzuki India and TVS Motor Co. will disclose their earnings on Jan. 28, while Bajaj Auto and Exide will announce their results on Jan. 30.

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Following are the resistance and support levels for key automotive stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anand JC

Edited by Saji George Titus

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