Auto Stocks Outlook
Bias negative; investors may buy for better risk-reward
This story was originally published at 21:17 IST on 20 March 2026
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MUMBAI – Analysts are worried about the risk of disruption of the supply chain of automobile companies, with the shortage of liquefied petroleum gas affecting dependent processes such as forging, heat treatment, and painting. There is also concern about the rising prices of crude oil and rubber hurting tyre companies' margins. However, investors may add large-cap automobile stocks to their porfolios because valuations are cheaper after the recent correction and they offer a better risk-reward ratio now.
"This correction has improved the sector's risk-reward profile, particularly for OEMs (original equipment manufacturers) with strong market positioning, pricing power, and demand visibility," Nirmal Bang said in a report earlier in the week. "While near-term risks related to potential gas supply disruptions, commodity inflation, and crude price volatility remain elevated, the recent correction has improved valuation comfort across the sector and created selective opportunities for long-term investors," the broking firm said.
Friday, the sectoral Nifty Auto index closed at 24715.90 points, up 0.8%. For the week, the index was the top performer among sectoral indices, rising over 2% when the benchmark Nifty 50 closed flat. Uno Minda and Mahindra & Mahindra rose the most, while Samvardhana Motherson and Ashok Leyland fell the most.
"The short-term movement for the Nifty Auto index is negative," Vipin Kumaar, assistant vice-president for equity research, technicals and derivatives, at Globe Capital Market, said. "The Auto index formed a fresh selling pivot below its long-term as well as short-term moving averages following a brief pullback rally," he said. "Going forward, we expect it to test the 24000–23600 levels in the near term. Immediate resistance is placed around the 25900–26850 levels."
TOP HEADLINES
* Tata Motors PV overcomes gas cut at Sanand, maintains output - Sources
* Minda Investments acquires 0.2% in Uno Minda from promoter for INR 1.55 bln
* TCS partners with Spain-based Amadeus for airline booking mgmt platform
* Ola Electric offers cash discounts, extended warranty benefits for Navratri
* Belrise Industries arm inks share purchase pact to buy UK's Chester Hall
* Ola Electric board OKs revision in terms of use of IPO proceeds, time limit
* TVS Motor board to meet Tue to consider interim dividend
* Bosch, Tata Autocomp to form JV to manufacture, sell, service EV components
* Maruti Suzuki gets income tax demand of INR 57.86 bln; co to file objection
* Maruti Suzuki may up output to 4 mln units/yr post FY30, plans 7 new SUVs
* PRESS:Bajaj Auto looks beyond Maharashtra for EV mfg on subsidy payment delay
* Tata Motors to raise prices of CVs by up to 1.5% across range from Apr 1
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:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Apollo Tyres | 420.85 | 5.10 | 428.70 | 411.40 |
| Ashok Leyland | 168.89 | (-)1.00 | 175.60 | 163.00 |
| Bajaj Auto | 9,051.00 | 2.00 | 9,209.30 | 8,852.30 |
| Balkrishna Industries | 2,105.10 | (-)5.40 | 2,188.00 | 2,048.80 |
| Bharat Forge | 1,711.50 | 2.20 | 1,776.80 | 1,673.60 |
| Bosch | 30,390.00 | 0.70 | 31,043.30 | 29,953.30 |
| Eicher Motors | 6,909.00 | 2.50 | 7,005.30 | 6,754.30 |
| Exide Industries | 302.65 | 2.00 | 310.40 | 297.80 |
| Hero MotoCorp | 5,275.50 | 1.30 | 5,437.80 | 5,134.80 |
| Mahindra & Mahindra | 3,066.10 | 4.60 | 3,135.40 | 3,008.60 |
| Maruti Suzuki India | 12,601.00 | 0.10 | 12,837.70 | 12,437.70 |
| MRF | 127,535.00 | (-)5.50 | 134,168.30 | 123,698.30 |
| Samvardhana Motherson International | 111.59 | (-)2.00 | 116.90 | 108.40 |
| Tata Motors | 419.65 | (-)1.40 | 428.60 | 410.60 |
| Tata Motors Passenger Vehicles | 314.10 | 0.00 | 320.00 | 307.80 |
| TVS Motor Co. | 3,462.20 | 4.10 | 3,563.30 | 3,399.50 |
| Index | Level | |||
| Nifty Auto | 24715.90 | 2.20 | 25105.20 | 24416.70 |
| Nifty 50 | 23114.50 | (-)0.20 | 23453.30 | 22898.20 |
BSE Sensex | 74532.96 | (-)0.00 | 75636.10 | 73833.40 |
Reported by Gopika Balasubramanium
Edited by Rajeev Pai
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