Maruti, Tata Motors: How to trade auto stocks ahead of Q4 results

Maruti needs to conquer Rs 7,750 convincingly to uphold the positive momentum. One can look for buying opportunities around Rs 205 - Rs 212 levels in Tata Motors.

NIFTYAUTO: The index has halted around 9,000 levels, a trend line support of an earlier breakout which now looks like a resistance, as it failed to nurture the upside. The technical indicators RSI (Relative Strength Index) and MACD (moving average convergence and divergence) have witnessed selling pressure in the overbought territory around the same levels. A reversal from a nearby trend line level of 9,100 indicates a stiff selling pressure and upside to witness strong resistance.
 

The current market trend around 8,750 level suggests a support of 100-day moving average (DMA) at 8,700. One can expect a reversal; however, if it fails then the suppprt may shift downwards to 8,500. Although, the daily chart shows formation of an Inverse Head and Shoulder, the major breakout is located above 9,100 levels. CLICK HERE FOR DETAILED CHART VIEW
 

Maruti Suzuki India (MARUTI): One of the stocks that’s holding Rs 6,460 level, its 200-weekly moving average (WMA) as support after a massive sell-off in September last year. It is struggling to cross significant moving averages as per the daily chart as well. To uphold the positive momentum, it needs to conquer Rs 7,750 convincingly. Otherwise, it may see further selling pressure leading to Rs 6,500 levels. The immediate support comes in at 50-DMA placed around Rs 7,000 levels. Any breach of the same for two continuous sessions may induce negative sentiment for the stock. CLICK HERE FOR DETAILED CHART VIEW
 

Tata Motors (TATAMOTORS): After a successful breakout of Inverse Head and Shoulder in the weekly chart, the stock is currently resisting the range of Rs 238 – Rs 244 levels. From a medium-term perspective; one can look for buying opportunities around Rs 205 – Rs 212 levels, its 200 DMA, for a reversal. So far, the trend looks bullish; however, buying around moving averages is seen in this stock. The support comes in the range of Rs 186 – Rs 180 levels, its 50-DMA and 100-DMA. On the other side, a rally above Rs 244 may lead to a new breakout resulting in Rs 275 levels. CLICK HERE FOR DETAILED CHART VIEW
 

Mahindra & Mahindra (M&M): The stock is trading with negative sentiment as “Death Cross” was seen as per daily chart. It is trading below 200 DMA since October 2018 and below 100 DMA from January this year. At current juncture, Rs 700 has become strong resistance. It needs to scale above the same otherwise, may continue to drift towards earlier lows of Rs 620 level. CLICK HERE FOR DETAILED CHART VIEW
 

Hero MotoCorp (HEROMOTOCO): A continuous decline in prices since January this year has dampened the bullishness in the stock. Every bounce has seen selling pressure with addition of more short positions. On the weekly scale, it is trading below 200 WMA, sign of a negative trend. A heavy selling pressure around Rs 2,900 can be seen on the charts. A breach of Rs 2,500 may drag this stock towards 2,100 levels. Traders and Investors need to stay sideline till stock conquers Rs 2,900 levels. CLICK HERE FOR DETAILED CHART VIEW
 

Bajaj Auto Ltd (BAJAJ-AUTO): The medium-term perspective looks bullish for the stock. It has seen corrective phase lately and then taken a breather by consolidating in the range of Rs 2,900 – Rs 2,500 before breaking out. A negative divergence can be seen on RSI however, MACD is still resilient to breach zero line decisively. Has a strong support of Rs 2,800 and upside seems heading towards Rs 3,400 levels. CLICK HERE FOR DETAILED CHART VIEW