In the past two months, Maruti Suzuki has somewhat recovered from its top price of Rs 10,930. It is getting closer to the Rs 9,880 200-period moving average.
Tata Motors had a respectable rise three months ago following a strong consolidation. On the daily chart, the stock formed a new bullish candle that resulted in a clear breakout.
Recent’s steep decline in the domestic stock market was caused by a “U-turn” made by benchmark indices, which gave up early gains. The decline was anticipated in advance of this week’s interim budget and US Fed policy decision. The BSE Sensex finished the day down 801.67 points, or 1.11 percent, at 71,139.90. The Nifty50 index finished the session at 21,522.10, down 215.50 points, or 0.99 percent.
Recently, the spotlight is likely to shine on a few automotive stocks, specifically Tata Motors Ltd, Maruti Suzuki India Ltd, and Mahindra & Mahindra Ltd (M&M). Here’s the outlook from Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, for these stocks ahead of Wednesday’s trading session:
Tata Motors: Recommendation – Buy | Target Price: Rs 930-965 | Stop Loss: Rs 790
Following a period of consolidation three months ago, Tata Motors has shown a notable rally. The recent formation of a bullish candle on the daily chart indicates a decisive breakout above Rs 830, signaling potential for further upward movement towards levels of Rs 930-965. With a strong overall trend and indicators pointing to strength, investors can anticipate additional gains while maintaining a stop loss at Rs 790.
Maruti Suzuki India: Recommendation – Hold | Target Price: Rs 10,380-10,500 | Stop Loss: Rs 9,800
After a correction from its peak of Rs 10,930, Maruti Suzuki has approached the 200-period moving average of Rs 9,880, showing signs of consolidation. A breakthrough past Rs 10,100 would enhance the bullish bias, possibly leading to a new uptrend with targets at Rs 10,380 and Rs 10,500. The near-term support is around Rs 9,800, below which the trend could weaken.
Mahindra & Mahindra: Recommendation – Buy | Target Price: Rs 1,920-2,080 | Stop Loss: Rs 1,590
Mahindra & Mahindra has been consolidating near the significant 50-EMA level of Rs 1,625. A clear breach above Rs 1,660 would improve the bias, potentially leading to a rise with initial targets at Rs 1,720 and Rs 1,800. Downside support is visible near the 100-period MA of Rs 1,590. With a positive overall trend, investors can hold onto this stock for medium-term targets of Rs 1,920 and Rs 2,080.
Source – https://www.business-standard.com/amp/markets/news/m-m-tata-motors-maruti-suzuki-what-is-driving-the-rally-in-these-stocks-124043000358_1.html
