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Informist, Friday, Aug. 21, 2026

 

MUMBAI – The Nifty Auto index is expected to switch to a higher gear next week after two consecutive weeks of logging negative returns, analysts said. While their outlook for the near term remains bullish, some consolidation is likely before a decisive move happens, technical analysts said.

 

"Sectoral participation remained mixed, with metal and realty stocks edging higher, while FMCG, auto and IT counters traded under pressure," Ajit Mishra, senior vice-president of research at Religare Broking Ltd. said in a note. Friday, the sectoral index closed 0.6% lower from Thursday at 29124.60 points. The index closed 0.3% lower for the week, performing slightly better than the Nifty 50 index, which fell 0.5%. This week, seven out of the 15 stocks in the Nifty Auto closed lower.

 

"The Auto Index continues to consolidate at higher levels after a strong rally, while sustaining above its rising 20-DMA (20-day simple moving average), indicating that the broader short-term trend remains bullish. However, the recent cooling in RSI suggests some consolidation may continue before the next directional move," Vatsal Bhuva, a technical and derivatives analyst at LKP Securities, said. 

 

"The 29000–29070 zone is crucial, supported by the 20-DMA and the 23.6% Fibonacci retracement level," Bhuva said. "A sustained close below 29000 (points) could trigger a deeper correction towards the 38.2% Fibonacci level near 28575," he said. On the upside, 29600–29870 remains the key resistance zone for the Nifty Auto.

 

Tube Investments of India rose almost 6% during the week to emerge the top performer in the sectoral index. Tata Motors Passenger Vehicles was the worst performer, falling almost 5%.

 

The automobile sector remains on a solid footing despite rising price pressures since the war in the Persian Gulf region began. Crisil Ratings expects domestic passenger vehicle dealers to log a strong year on the back of premiumisation and periodic price hikes by automakers. "Demand for PVs (passenger vehicles) will continue to be underpinned by structural drivers such as rising disposable incomes, improving road infrastructure, lower interest rates, increasing vehicle penetration, and growing ownership of multiple vehicles," Crisil said in a report Friday. "Rural demand could moderate in the second half because of the potential impact of El Nino and elevated fuel prices linked to geopolitical tensions in West Asia," it added.

 

The two-wheeler market in India also continues to perform strongly. The segment accounts for most of the automobiles sold in India. These companies have increasingly looked to global markets to offset the domestic lull in recent years. Indian automakers' two-wheeler export volumes are expected to continue their strong momentum in the financial year 2026-27 (Apr-Mar) and could grow up to 20% on year because of an economic recovery in key export markets, India Ratings and Research said earlier this week.

 

In FY26, export volumes of two-wheelers had grown 23% on year to 5.18 million units, topping the record high of 4.44 million units set in FY22. "A low 2W penetration in the key export markets, inadequate road infrastructure, the use of 2Ws for public transportation, and the growing presence of Indian original equipment manufacturers (OEMs) will continue to drive 2W export demand in these markets in the medium term," the agency said.
 

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* Royal Enfield Continental GT 650 relaunched with cosmetic tweaks

 

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	439.70	(-)1.00	451.90	421.60
Ashok Leyland	173.00	0.80	174.40	171.60
Bajaj Auto	11,700.00	0.00	11,846.70	11,586.70
Balkrishna Industries	2,350.80	(-)0.50	2,394.40	2,320.20
Bharat Forge	2,063.00	(-)0.10	2,102.80	2,001.40
Bosch	48,200.00	2.30	48,873.30	47,723.30
Eicher Motors	8,010.00	(-)0.70	8,166.70	7,901.70
Exide Industries	459.60	(-)3.50	470.90	450.70
Hero MotoCorp	5,735.00	(-)1.00	5,797.00	5,611.00
Mahindra & Mahindra	3,412.20	(-)0.50	3,467.80	3,384.40
Maruti Suzuki India	13,565.00	(-)1.90	13,890.30	13,402.30
MRF	132,665.00	(-)0.60	134,868.30	131,318.30
Samvardhana Motherson International	169.38	0.60	171.90	166.40
Tata Motors	472.55	(-)0.40	486.00	461.90
Tata Motors Passenger Vehicles	317.90	(-)5.00	324.60	313.60
TVS Motor Co.	4,390.00	1.90	4,424.90	4,320.10
Index	Level
Nifty Auto	29124.60	(-)0.30	29468.90	28915.00
Nifty 50	24252.00	(-)0.50	24324.90	24170.40
BSE Sensex	77540.83	(-)0.60	77850.60	77291.00

 

End

 

Reported by Anand JC

Edited by Rajeev Pai

 

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