Since the start of April 2022, the auto index has been outperforming benchmark index Nifty50.
The gains for auto index stand at 12% against a loss of 9% for the Nifty50 from March 2022 closing. It has been the best sector to invest in the current market scenario.
If you are a subscriber of our premium recommendation service Fast Profits Report, I have recommended couple of automobile stocks which are outperforming the Nifty50.
The multiple highs of ~12,100 was hit in 2017 and 2021, respectively which is acting as a hurdle.
The Moving Average Convergence Divergence (MACD) indicates the momentum could surpass the resistance zone as the bullish crossover of averages around the integer lines is sign of strength in the trend.
As the auto index outperforms and stock markets recover, the auto index may breakout towards new all-time highs.
There are other reasons too apart from the technical ones which could trigger the next leg of growth for auto stocks. Read our editorial on why auto stocks are rising.
At present, the auto index is trading higher by 1.9% at 11,875 levels.
From the index, Eicher Motors and TVS Motor Company are leading with gains. TVS Motor share price is rising for months now and has touched all-time high recently.
I'll share more on his trend on my Telegram group. If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...
Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.
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