NIFTY AUTO INDEX
After making a low near 23560, the Auto sector showed a strong reversal and momentum started improving. The gap-up opening on 8 April indicated fresh buying interest from lower levels.
Price faced resistance near the 26700 zone multiple times and initially failed to sustain above it. After a healthy pullback towards the 25400 support area, buyers again stepped in and the index finally managed to break above the 26700 resistance zone.
Currently, overall market structure looks bullish with higher lows formation and improving price action. If price sustains above the breakout zone, there is probability of an upside move towards the nearest swing high zone around 28700-28800 levels.
The previous resistance zone may now act as support. Sustaining above this area will be important for continuation of bullish momentum.
Keep an eye on Auto sector stocks as strong sector momentum may lead to bullish moves in individual Auto stocks as well.
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After making a low near 23560, the Auto sector showed a strong reversal and momentum started improving. The gap-up opening on 8 April indicated fresh buying interest from lower levels.
Price faced resistance near the 26700 zone multiple times and initially failed to sustain above it. After a healthy pullback towards the 25400 support area, buyers again stepped in and the index finally managed to break above the 26700 resistance zone.
Currently, overall market structure looks bullish with higher lows formation and improving price action. If price sustains above the breakout zone, there is probability of an upside move towards the nearest swing high zone around 28700-28800 levels.
The previous resistance zone may now act as support. Sustaining above this area will be important for continuation of bullish momentum.
Keep an eye on Auto sector stocks as strong sector momentum may lead to bullish moves in individual Auto stocks as well.
✅ If you like my analysis, please follow me here as a token of appreciation :)
in.tradingview.com/u/SatpalS/
📌 For learning and educational purposes only, not a recommendation. Please consult your financial advisor before investing.
Note
AUTO INDEX has pulled back and taken support near 25400. There is probability of index sustaining at this level and giving reversal, today's candle is already looking strong as of now, closing near 25900 will be good.Note
It went up as per the analysis, from 25900 to 26600, now it is near the previous resistance area, breakout of this is crucial. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.