AUTO SECTOR – overall we have seen last three week auto sector given a good fall, but current week given some recovery and hopes for the bulls. so its interesting to study positional chart of CNX AUTO now for overall view of auto sector.
CNX AUTO TECHNICAL VIEW – overall chart study indicating that CNX AUTO chart has recently created positive convergence on chart, and able to cross over the trend-line resistance also, which can indicate that its looking for a up move now, but wait still we cant say that signal is confirm yet, as per my reading we need one more positive close above previous close and that only can give some confirmation about this reversal.
even if we consider a previous fall we can clearly notice that, after giving negative divergence signal on chart it broken the nearest support line and after that only we seen major fall in auto sector.
overall reading indicating that CNX AUTO INDEX if able to close above 5885 then we can see some up moves in this till 4650-4770-4950 also. if it not able to give closing above desire level or not able to trade positive for next two trading session, then only we can see fall from here. downside support is 4350-4200 and this is consider to be long term trend support also. below this we may see some massive selling taking place which produce 4000-3850-3600 levels also.
Stocks to watch in auto sector –
movements to see –
1 bajaj auto if close above 1950 level
2. mahindra and mahindra if close above 975 with 900 as major long term support.
3. maruti closing above 1600 can produce better result upside.
4. tata motor if able to hold 260 level with gains in next 2 session then reversal to see, below 260 closing can lead for selling in this.
5.heromotor if able to close above 1685 level then up move to expect in this 1550 support now.
6. escort above 77 close can give major moves..
7. MRF biggest support at 12000 now if sustain this level and if give positive close then we can see movement till 14000-15500 also below 12000 we can see 11000-9700 levels also.
other stocks to see in movementum will be bharat forge, bosch,