Auto Sector has rallied 75% since April, with increasing demand for personal vehicles in India. Technically, the price has always followed the long term trend line marked on the chart. The prices breached the trend line for the first time due to the COVID-19 related sell off.
The auto sector should correct and stay sideways for the coming days and offer good long term buying opportunities.
Based on the analysis, 7300 is a buying zone for auto stocks with a horizon of 1-2 years.