Maruti, Bajaj Auto, M&M: Trading strategies for auto stocks as sales slide

The trend looks weak below 5,000 levels for the Nifty Auto index. Although the current formation claims consolidation with lower support around 4,600 levels, the trend remains short on upward rallies

Most auto stocks were trading weak on Wednesday on poor sales numbers for March as automakers were forced to suspend operations amid a nationwide lockdown to contain the spread of the coronavirus pandemic. Maruti Suzuki India Ltd (MSIL), for instance, reported 47 per cent year-on-year fall in its total sales during March to 83,792 units. Ashok Leyland and Eicher Motors, too, reported a slump in March sales figures.

Here is what technical charts suggest for Nifty Auto index and its key constituents.

NIFTY AUTO INDEX: The trend looks weak below 5,000 levels as per the daily chart. Although the current formation