TVS Motor, Bajaj-Auto: Auto index hits record high, may rise up to 5%

Selective automobile stocks may soar up to 15%, show charts

Nifty auto index sets a new record high on Monday, with robust underlying momentum. Bajaj Auto and TVS Motor Company, two index constituents, have emerged as the top contenders, simultaneously hitting their respective all-time highs. 

Both the stocks have surged approximately 20 per cent so far this year. Another constituent, Eicher Motors also hold its place high by soaring 24 per cent in 2023. 

On Monday, shares of Mahindra & Mahindra gained 3.30 per cent, while others were seen trading flat.

Here’s the technical outlook amid auto index hitting a new all-time high:-

NIFTYAUTO

Likely target: 15,000

Upside potential:  5%

The index has scaled a new historic peak post displaying robust sustainability over the key barrier of 13,500 level. Thus, unless the index falls beneath this level, the trend is likely to continue in the upward direction.  

As of now, the hurdle, as per the chart, appears to be near 15,000 levels. The present trend has provided a concrete breakout, with underlying trend supportive of the bullish bias. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Likely target: 5,000

Upside potential:  10%

The present upward trend is the outcome of the “Golden Cross” breakout evolved in the late March this year. The bulls are riding the price action higher, withholding the strength stronger, with no signs of weakness. 

The supports for the stock exist at Rs 4,400 and Rs 4,200 levels, with the current mood signalling rally to Rs 5,000 mark. CLICK HERE FOR THE CHART

TVS Motor Company Limited (TVSMOTOR) 

Likely target: Rs 1,500

Upside potential:  15%

The constant ability to hold the upward bias, over the key level of Rs 1,200-mark has now paved a way to the next leg of upside. A new historic peak is the result of the same. The trend is resilient and eager to conquer every sell-off anticipated to emerge on the trend up.

The price action is headed towards Rs 1,500 levels, with immediate closing basis support at Rs.1200 levels, as per weekly and daily chart. The stock has broken out, following a stiff consolidation between November last year to early May this year; approximately 6 months, has signaled a gradual upside in short-to-medium term view. CLICK HERE FOR THE CHART

Eicher Motors Ltd (EICHERMOT)

Likely target: Rs 3,889

Upside potential:  5.50%

While shares of Eicher Motors trade in the overbought category of the Relative Strength Index (RSI), the price action is not letting bears to gain control of the trend. 

The all-time high of the stock is at Rs 3,889.65 level, where the current trend seems to be headed, as per the technical charts. For a medium-term perspective, Rs 3,339 level, its 200-day moving average (DMA) becomes the bolstering support. Immediate support falls at Rs 3,500-level. CLICK HERE FOR THE CHART

Tata Motors Ltd (TATAMOTORS)

Outlook: Breakout over Rs 536

Shares of Tata Motors have risen sharply in the recent sessions and are yet to breakout on the upside. The stock needs to surpass the higher barrier of Rs 536, as per the daily chat. Once this hurdle is overcome, the trend could see a move in the direction of its all-time high of Rs 604 level.

The current trend has a support of Rs 500, followed by Rs 480 level. Below Rs 480, the stock may retrace to Rs 440 levels, as per the daily chart. CLICK HERE FOR THE CHART