Hi everyone!
As we already know that few months back auto sector has given breakout from its cup & handle pattern, after giving beautiful breakout in last 2 months it has corrected a bit and now taking support near its breakout level. RSI is also giving signals for strength at current level, so the sector to go long this Diwali would be Auto. Now zooming-In, in Auto sector we have to choose stocks which will be major contributor in coming rally. Some stocks like M&M and TVS were the leaders during last up move and gave almost 60-70% rally in last 4 to 5 months, they still have potential to move 30-40% on upper side but it is not suitable for fresh entry as risk to reward will not be suitable. "CUMMINSIND" is one stock looking strong and supposed to lead from front in coming rally in auto sector, it is near its cup & handle breakout level and formed a beautiful triangle pattern, RSI is also giving positive signals. Lower side risk would be only 7% and is supposed to go up to 2000 which would be 70% from current level, i.e., we will be getting risk : reward of 1:10.
Stay safe!
Happy Diwali.
As we already know that few months back auto sector has given breakout from its cup & handle pattern, after giving beautiful breakout in last 2 months it has corrected a bit and now taking support near its breakout level. RSI is also giving signals for strength at current level, so the sector to go long this Diwali would be Auto. Now zooming-In, in Auto sector we have to choose stocks which will be major contributor in coming rally. Some stocks like M&M and TVS were the leaders during last up move and gave almost 60-70% rally in last 4 to 5 months, they still have potential to move 30-40% on upper side but it is not suitable for fresh entry as risk to reward will not be suitable. "CUMMINSIND" is one stock looking strong and supposed to lead from front in coming rally in auto sector, it is near its cup & handle breakout level and formed a beautiful triangle pattern, RSI is also giving positive signals. Lower side risk would be only 7% and is supposed to go up to 2000 which would be 70% from current level, i.e., we will be getting risk : reward of 1:10.
Stay safe!
Happy Diwali.