JK Tyre, CEAT: How to trade auto ancillary stocks post August sales nos

With the "higher high, higher low" formation on the daily chart, Amara Raja Batteries is gradually rising with the support of 50-day moving average (DMA).

Shares of auto and auto ancillary companies were trading mixed in the afternoon deals on Wednesday following the August sales numbers announcement. Data released by a clutch of companies showed that automobile sales for most companies in India rose at a brisk pace in August over the same month last year. 

Subrata Ray, senior group vice-president at ICRA, said the sales are being driven by rural demand as well as inventory restocking at dealerships ahead of the festive season. READ MORE

Here's a look at how shares of key auto ancillary companies look on charts. 

Amara Raja Batteries Limited (AMARAJABAT):