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Auto shares: Tepid Nov sales may put M&M, Maruti, TaMo in accumulation mode

Stocks bearing breakout on moving averages, price strength and technical indicators are ready to see steady upside of up to 9 per cent

November auto sales | Tata Motors | M&M

Avdhut Bagkar  |  Mumbai 

Automobile investments
Nifty Auto

Likely target: 11,250
Upside potential: 4%

While the daily chart structure exhibits a negative support-breakdown with the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) showing continued weakness, the index movement is honouring the 200-day moving average (DMA) placed at 10,490. Thus, as long as the 200-DMA is defended, the momentum and direction may resume the upward trend in the direction of 11,250 levels, which is the next hurdle. CLICK HERE FOR THE CHART

Likely target: Rs 520
Upside potential: 8%

Following the robust breakout in the October 2021, the shares of witnessed a sideways consolidation in the range of Rs 540 to Rs 460 levels. It did see some weakness below Rs 460 lately, however failed to gain follow-up selling pressure, and held the ground close to 50-DMA, currently placed at Rs 445 levels. Now, on any stability above Rs 480 levels, which seems to be a minor obstacle at current juncture, the stock price may see a sharp rally towards Rs 520 levels. CLICK HERE FOR THE CHART

Mahindra & Mahindra Ltd (M&M)
Likely target: Rs 900
Upside potential: 7%

A “Double Top” breakdown may dismantle the positive bias for Mahindra & Mahindra shares, according to the daily chart. However, the 200-DMA placed at Rs 811 may hold firm ground, providing crucial support for the counter. If this happens, the reversal may see the sharp turnaround and move in the direction of Rs 900 levels. CLICK HERE FOR THE CHART

Maruti Suzuki India (MARUTI)
Likely target: Rs 7,900
Upside potential: 9%

After witnessing a bullish “Golden Cross” breakout at Rs 7,700 levels, the shares of Maruti Suzuki India managed to scale Rs 8,300. This up move is currently testing the support of Rs 7,115 levels, which is the 200-DMA, according to the daily chart. The bullish breakout is intact and any positive trigger may see a huge interest in the stock with possible movement towards Rs 7,900 levels. CLICK HERE FOR THE CHART

Limited (TVSMOTOR)
Likely target: Rs 730 to Rs 750
Upside potential: 8%

The recent up move that recorded a new all-time high of Rs 813.95 soon witnessed a profit booking. Now, the formation of a “Golden Cross” at Rs 750 signals a positive bias. The stock is currently subjected to resistances of Rs 700 and Rs 730 levels. That’s said, the downside pressure is not letting stock to easily fall downward at the current juncture. The immediate support comes at Rs 634, which is the 50-DMA. The overall trend looks promising with the stock attempting to rally towards Rs 730 to Rs 750 levels. CLICK HERE FOR THE CHART



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First Published: Thu, December 02 2021. 12:14 IST