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Informist, Friday, May. 22, 2026

NEW DELHI – The Nifty Auto index is expected to either drift sideways or trade with a hint of bearishness in the coming week, a technical analyst said. "After an unsuccessful breakout attempt, the index has entered a congestion phase, consolidating between its short-term and medium-term moving averages," said Vatsal Bhuva, a technical and derivatives analyst at LKP Securities.

"Sharp swings in the index reflect heightened volatility, while range-bound closing patterns and weak momentum indicators suggest a lack of directional strength. The overall outlook remains neutral, with a bearish sideways trend likely to persist in the coming week," Bhuva said.

Friday, Nifty Auto closed 0.1% higher at 26017.10 points. For the week, the index contracted 0.2% – contracting for the second consecutive week. "Key support for the index is placed near 25700, aligned with the 50 DMA (daily moving average), while resistance stands around 26300," Bhuva said.

The Nifty Auto underperformed the benchmark Nifty 50 index this week, which rose 0.3%. It also underperformed the wider Nifty 200 index, which booked a gain of 0.6% for the week.

Tube Investments of India was the top performer within the 15-stock sectoral index this week as its shares rose almost 6%. Bosch emerged as the top laggard, down a shade over 4% this week. Technicals indicate shares of Bajaj Auto may rise next week, analysts said. 

Fundamentals look to be in place for the automobile industry, with sector experts and companies displaying optimism about the demand continuing its momentum. However, impact of the twin-hike in fuel prices remains to be seen.

According to India Ratings and Research, the country's passenger vehicle industry is entering "a structurally positive but execution-sensitive capex cycle". Companies plan to invest INR 3.2 trillion–INR 3.5 trillion over 2025-26 (Apr-Mar) to FY30, with a focus on transitioning to electric vehicles, scaling up exports, and banking on premiumisation. 

"While long-term earnings and return metrics could structurally improve, investors should expect near-term moderation in return on capital employed (ROCE), potential capacity utilisation gaps, and execution risks around EV adoption," India Ratings said in a report on Friday.

TOP HEADLINES

* Maruti Suzuki to launch flex-fuel WagonR next month, official says
* Ola Electric sees Q1 consol sales at up to INR 5.5 bln, 40,000-45,000 orders
* Eicher Motors to invest INR 7.5 bln for 50% stake in JV, Volvo Fincl Svcs
* Analyst Concall: Bosch remains conservative, carefully optimistic on growth
* Earnings Review:Bosch Q4 sales, expenses rise fastest in FY26, PAT growth hit
* Minister Kumaraswamy urges transport operators to adopt electric vehicles
* Ola Electric Mobility Jan-Mar consol net loss narrows on year to INR 5 bln
* NCLT notice to Hero MotoCorp on Naxnova Tech insolvency plea; to hear Jun 5
* Indian auto part cos to see tech benefits from FTAs, says ACMA DG Mehta
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* Ashok Leyland board to meet on May 28 to mull issuing NCDs
* Eicher Motors to buy 216 acres in Andhra for INR 25 bln to set up mfg unit
* Maruti Suzuki starts output at Kharkhoda plant, ups capacity by 250,000 units
* Earnings Review: Uno Minda's Q4 PAT rises over 22%, beats Streets' view
* Craftsman Automation approves raising up to INR 20 bln via equity, debt
* Tata Motors buys 18% stake in Freight Tiger for INR 956.6 million
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* TVS Motor arms sign asset sale pact with Callista Asset Management GmbH
* TVS Motor launches electric 3-wheeler TVS King EV MAX in Nepal
* Analyst Concall: HAL extends delivery timeline for Mk1A to Aug-Sept
* Bharat Forge step-down arm lays foundation for INR 15-bln defence facility
* Ola Electric to invest INR 20 billion in battery, tech arms in one year
 

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 Akul Nishant Akhoury

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