Motown in fast lane! Auto stocks eye up to 20% upside; MRF can hit Rs 1L

The NSE Auto index seems well placed to test its all-time high; Prominent auto stocks like Tata Motors, Bajaj Auto, Hero MotoCorp and TVS Motor can gain 3.5-10 per cent

NIFTYAUTO
Likely target: 12,108
Upside potential:  5.50%

The index is continually recording new 52-week high for the past three trading sessions with the Relative Strength Index (RSI) exhibiting a bullish bias in the overbought territory, according to the daily chart. The overall trend is heading towards a new all-time placed at 12,108-level. The immediate support for the index comes at 11,300 and 11,100 levels.  CLICK HERE FOR THE CHART
 

Tata Motors Ltd (TATAMOTORS)
Likely target: Rs 450 and Rs 470
Upside potential:  7% to 11%

After conquering the resistance of Rs 361-level, the shares of Tata Motors broke out of the “Golden Cross” formation. This dynamic reflects a medium-term bullish bias, according to the weekly chart. The trend is heading towards Rs 450 and Rs 470 levels. The closing basis support stays at Rs 400 levels.CLICK HERE FOR THE CHART

 
Bajaj Auto Ltd (BAJAJA-AUTO)
Likely target: Rs 4,260
Upside potential:  8%

The shares of Bajaj Auto are contemplating to conquer the 100-day moving average (DMA) placed at Rs 3,942-level, according to the daily chart. The volume during this up move is strong and a decisive close above the said moving average may trigger any upside towards Rs 4,260-level, which is the next big hurdle. The RSI is hinting a breakout of “Inverse Head and Shoulder” reflecting a firm positive strength. The support for the stock stays at Rs 3880. CLICK HERE FOR THE CHART
 
Hero MotoCorp Ltd (HEROMOTOCO)

Likely target: Rs 3,000 and Rs 3,200
Upside potential:  3.50% to 10%

Hero MotoCorp shares have defended the support of 50-DMA placed at Rs 2,806 and continues to rally towards Rs 3,000-mark, which is its 200-DMA. This momentum has a trendline breakout of RSI, which further negates any negative weakness and a sustain move above 200-DMA can even trigger an upside towards Rs 3,200-level, as per the daily chart. The closing basis support for the stock is at Rs 2,820.  CLICK HERE FOR THE CHART
 
TVS Motor Company Limited (TVSMOTOR)
Likely target: Rs 620
Upside potential:  7.50%

The shares of TVS Motor trade near 200-DMA placed at Rs 576. If the stock manages to cross this mark with aggressive volume, the upside breakout may see the stock reach Rs 620-level, which is its next hurdle. The Moving Average Convergence Divergence (MACD)  is progressively rising above the zero line signalling a positive momentum in an upward direction. The immediate support for the stock exists at Rs 555-level.  CLICK HERE FOR THE CHART

 
MRF Limited (MRF)
Likely target: Rs 1,05,000
Upside potential:  21%

The stock has made a “Golden Cross” breakout on the weekly chart. This positive sentiment have triggered an upside rally that may see Rs 1,20,000-level in the medium-term. As long as the support of at Rs 75,000 is held, the up move is likely to add interest of market participants on aggressive close. The MACD has jumped back above the zero line suggesting a positive bias, as per the weekly chart.  CLICK HERE FOR THE CHART