Maruti, Bajaj Auto: 5 auto stocks that can rally up to 9% from here

The breakout of "Inverse Head and Shoulder" for the Nifty Auto index hints at bullish scenario for auto stocks, provided the overall market momentum says strong

NIFTY AUTO INDEX
Likely target:  10,800 and 11,000
Upside potential:  2% to 4%

The breakout of “Inverse Head and Shoulder” can be easily seen on the daily chart. This exhibits a rally in the direction of 10,800 and 11,000 levels. And as long as the support of 10,400 is held on a closing basis, the positive bias is likely to see higher levels with strong participation from market players. The technical indicator, Moving Average Convergence Divergence (MACD) has conquered the zero line indicative of the positive momentum with an upward direction.  CLICK HERE FOR THE CHART
 

Bajaj Auto Ltd (BAJAJ-AUTO)

Likely target:  Rs 4,050 and Rs 4,200 (after crossing Rs 3,900)
Upside potential:  4% to 7.50%

An up move above the obstacle of Rs 3,900 may breakout in the direction of Rs 4,050 and Rs 4,200 levels, according to the daily chart. The current stock momentum suggests a rally towards this breakout mark with MACD attempting to cross the zero line upward. The immediate support falls at Rs 3,780-level. The medium-term support stays at Rs 3,640, which is the bottom level of the recent consolidation. CLICK HERE FOR THE CHART
 
Maruti Suzuki India (MARUTI)
Likely target:  Rs 7,650
Upside potential:  6%

After crossing the 100-day moving average (DMA) at Rs 7,056, the stock rallied towards the 200-DMA placed at Rs 7,187 level. Going forward, a decisive close above the 200-DMA may spark a sharp upside towards Rs 7,650 levels, which is the next crucial resistance. A close above 200-DMA is considered as a positive trigger by the investor community.  CLICK HERE FOR THE CHART

Tata Motors Ltd (TATAMOTORS)
Likely target:  Rs 360
Upside potential:  9%

A successful close above 100-DMA with MACD conquering the zero line upward has triggered a massive positive upside for this stock, according to the daily chart. The shares of Tata Motors are moving towards Rs 360, the level that witnessed selling pressure making it the crucial barrier. The immediate support comes at Rs 320 level. The medium-term support is located around the 200-DMA at Rs 293-odd level.  CLICK HERE FOR THE CHART

 
Ashok Leyland Ltd (ASHOKLEY)
Likely target: Rs 143
Upside potential:   9%

The recent correction has seen the counter taking support at its 200-DMA, which is currently placed at Rs 119-odd level. The reversal has seen a bounce towards Rs 130-level. In future, the stock must absorb all the selling pressure emerging above Rs 130 level or show an aggressive close. When that happens, the upward breakout may lead the stock towards Rs 143-level, which is the next crucial mark for the stock.  CLICK HERE FOR THE CHART

Hero MotoCorp Ltd (HEROMOTOCO)
Likely target: Rs 3,018
Upside potential:   4.50%

The breakout of the “Inverse Head and Shoulder” at Rs 2,850 triggered an upmove towards Rs 2,950-level. Subsequently, the stock witnessed profit booking and tested the support of Rs 2,800, which is the 50-DMA. The current intraday up move on Sept 27 indicates a rally in the direction of Rs 3,018-odd level, its 200-DMA. The support stays at Rs 2,850 and Rs 2,800 levels. CLICK HERE FOR THE CHART