Bulls fancied these 5 auto ancillaries in 2022; charts hint 25% rally ahead

Since July, most of the auto ancillary stocks have geared up with a resolute strength and continue to rally smartly seeking higher ground.

Shares of auto ancillary companies have performed well so far in 2022, with select ones on the track to deliver high double-digit returns. Among top performers, Pricol and JTEKT India have surged 80 per cent each, while Lumax Auto Technologies gained 70 per cent.
 

Among others, stocks such as Automotive Axles and Talbros Automotive Components have risen 40 per cent and 35 per cent, respectively. Meanwhile, the Nifty Auto index has hit a new historic peak so far in 2022, up 18 per cent from last year and continues to remain bullish.
 

Since July 2022, most of the auto ancillary stocks have geared up with a resolute strength and continue to rally smartly seeking higher ground.

Going ahead, here’s a technical outlook on these auto ancillary stocks to help you understand their next moves:-

Lumax AutoTechnologies Ltd (LUMAXTECH)

Outlook: Rs 300 remains a key obstacle

The stock undoubtedly indicates a struggle above Rs 300 mark, which it attempted to conquer in September this year. Inability to overcome this hurdle led the stock slip to Rs 230, suggesting negative bias. However, if the stock manages to hold ground here it could witness a pull back rally.
 

At this juncture, the Rs 280 and Rs 295 seem to be the key barriers to the up move. Support for the stock is seen at Rs 250-mark, followed Rs 230, which was the reversal point. CLICK HERE FOR THE CHART

Pricol Ltd (PRICOLLTD)

Likely target: Rs 225 

Upside potential:   12%- 25%

Shares of Pricol were trading near the all-time high of Rs 208, registered in October this year. The trend is resolute and shows robust resilience to any sell-off. With the current support at Rs 180, the stock could aim to reach Rs 225 initially, and thereafter towards Rs 250, setting fresh historic peaks. CLICK HERE FOR THE CHART

Automotive Axles Ltd (AUTOAXELS) 

Outlook: Breakout outside the range

Automotive Axles shares have gone sideways; with the stock witnessing a hurdle on the upside at Rs 2,200 level and experiencing accumulation around Rs 1,800 on the lower side. Only a decisive move outside this range, could regulate the next course of action. The overall trend is likely to remain positive, as long as the stock trades above the 200-day moving average (DMA) situated at Rs 1,741. CLICK HERE FOR THE CHART

Jtekt India Ltd (JTEKTINDIA)

Likely target: Rs 200

Upside potential:   20%

Jtekt India hit new highs in the previous three trading sessions, with attractive volumes indicating healthy interest from the market participants. The present trend, over Rs 150, looks dominant and distinct. The stock could scale further highs towards Rs 170 level, shows the daily chart. CLICK HERE FOR THE CHART

Talbros Automotive Components Ltd (TALBROAUTO)

Likely target: Rs 675 (after crossing Rs 575)

Upside potential:   17%

The stock is tussling to leap over the hurdle of Rs 575 mark, as per the daily chart. Once this barrier is conquered, the trend would set a rally towards the all-time high of Rs 625 and may even reach to Rs 675. The immediate support for the stock is set at Rs 500 and Rs 475. Only a decisive breakdown beneath Rs 475, the positive bias could see the bearishness dominating the stock. CLICK HERE FOR THE CHART