Tata Motors, Eicher, Maruti: Will auto shares breakout for bigger gains?

Automobile shares may breakout after crossing significant resistances

NIFTY AUTO INDEX

Likely target:  11,600 (after crossing 50-DMA)

Upside potential:  4%

Although, the index managed to hold the 200-day moving average (DMA) support at 10,500 levels, until the resistance of Rs 11,150 does get conquered, its 50-DMA, the positive bias may not show accumulated bullishness. And when it crosses the resistance mark, the breakout may head in the direction of 11,600 levels, as per the daily chart. The immediate support comes at Rs 10,800 levels, which is its 100-DMA. CLICK HERE FOR THE CHART

Eicher Motors Ltd (EICHERMOT)

Likely target:  Rs 2,950

Upside potential:  9%

The last time the shares of Eicher Motors crossed 200-DMA, it failed to conquer 50-DMA and witnessed massive sell-off. At current levels, the stock has not only crossed the respective hurdle, but also managed to build upon the strong volumes. This bullish breakout is indicating a rally towards Rs 2,950. The Moving Average Convergence Divergence (MACD) has crossed the zero line reflecting a robust momentum in upward direction, as per the daily chart. The immediate closing basis support stays at Rs 2,500 levels. CLICK HERE FOR THE CHART

 

Tata Motors Ltd (TATAMOTORS)

Likely target:  Rs 520 and Rs 536

Upside potential:  5% to 8.50%

With a firm gap-up on Monday, the Tata Motor has crossed Rs 486 levels, which is its 50-DMA obstacle. This move enables a rally in the direction of Rs 520 and Rs 536 level, according to the daily chart. A clear indication of MACD to ink above the zero line suggests a bullish momentum with direction to stay in upward side. The immediate support falls at Rs 460 levels. CLICK HERE FOR THE CHART

 

Maruti Suzuki India (MARUTI)

Likely target:  Rs 8,000 (once Rs 7,600 is conquered decisively)

Upside potential:  5.50%

The shares of Maruti  Suzuki India are struggling to sustain above the resistance of Rs 7,600 levels. And unless this resistance does not gets conquered, the positive bias may not seek an accelerated move. One can expect an upside towards Rs 8,000 mark when the hurdle gets taken over. The MACD is rising towards the zero line, a positive signal for the bullish bias, according to the daily chart. The immediate support comes at Rs 7,200 and then at Rs 7,000 levels. CLICK HERE FOR THE CHART

Mahindra & Mahindra Ltd (M&M)

Likely target:  Rs 900 and Rs 920

Upside potential:  5% to 7%

The overall structure of the stock indicates a weakness that may turn into a bullish bias only if the resistance of Rs 864, which is its 50-DMA, is crossed. It does have a support of 200-DMA positioned at Rs 808 levels, according to the daily chart. If 50-DMA is cleared, the breakout rally may see Rs 900 and Rs 920 as an immediate reach. CLICK HERE FOR THE CHART