Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Aug 16, 2022 - The Auto Index is Changing Gears. But Will it Outperform Nifty?

The Auto Index is Changing Gears. But Will it Outperform Nifty?

Aug 16, 2022

The Nifty Auto index outperformed Nifty50 between March-July'22.

When broader markets were correcting, the auto index hit new all-time high.

In the market reversal from ~15,200 to 17,800 for the Nifty50, some of the index heavyweight stocks witnessed short-covering rally.

This boosted the Nifty50 and it outperformed against the Nifty Auto index in August 2022.

Accelerating the Momentum

As auto index is trending close to its all-time high after the breakout from multiple resistance levels (marked green on the chart).

The index has broken out from the breather in the form of a wedge pattern (black dotted lines on the chart).

Nifty Auto Index Chart

 

The bulls are in control of the trend. The Nifty50 is heading to 18,000. This indicates the outperformance will continue. It's just a matter of time.

Constituents of Auto Index:

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 1.7% at 13,140 levels.

From the index, Eicher Motors, Apollo Tyres, and Motherson Sumi are leading the gainers.

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

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.

Equitymaster requests your view! Post a comment on "The Auto Index is Changing Gears. But Will it Outperform Nifty?". Click here!