Technical view on mid-cap, auto stocks: Should you buy?

Also, what do charts indicate for auto stocks after excise duty cuts in the interim budget prompted price cuts by major auto companies

Benchmark indices are trading in a narrow range with positive bias led by index heavyweights Infosys and RIL.
 
By 10:55am, the 30-share Sensex was up 43 points at 20,677 and the 50-share Nifty was up 12 points at 6,140.
 
The broader markets are outperforming the benchmark indices- BSE Midcap and Small-cap indices are up by between 0.5-0.7% against 0.2% up-move in the benchmark Sensex.
 

Since January 23, nearly 192 stocks from BSE-500 mid-cap and small-cap indices returned over 44 percent gains compared to benchmark Sensex's 3.5% negative growth. Reports quoted analysts as saying that strong third quarter performance coupled with knocked down valuations in the space acted as a trigger. But analysing charts for finding near-term trend can be crucial for short-term traders to take positions ahead of a potential swing.

 
Ravi Nathani, Technical Analyst and Founder at nsetoday.com gives his take on broader markets and the trend that is likely to pan out in the near term.
 
Nifty is finding stiff resistance at 6150 mark after falling below 6,000 mark this week. What are the levels to watch out for?
Resistance on charts is expected around 6170 whereas support is around 6090. Best trading strategy for traders would be buy on dips as index has given a positive breakout on charts for near term which results a target of 6170 & 6210.
 
So is the short-term trend in favour of bulls now?

YESBANK is a buy with a target of 325 / RELINFRA would be a buy if closed above 473 with a target of 490. ACC is a buy with a target of 1050.
 
What about auto stocks? Sentiment has turned positive after excise duty cuts in interim budget. How is BSE Auto placed index technically? Your top picks from the auto pack
 
BSE AUTO index has resistance around 12350, whereas on charts trend is up and is expected to outperform the markets. HEROMOTOCO & TATAMOTORS along with M&M are expected to outperform whereas in near term a small dips would be expected whereas support for the same are M&M around 920, HEROMOTOCO around 1960 & TATAMOTORS around 370, traders could buy these stocks around these levels for short & medium term perspective.

 
BSE Mid-cap has outperformed the benchmarks now. How is the index placed on charts? Your top picks there
 

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