Auto Sector - Ready for an upside ?Forming a flag patter, breakout might happen on upper side, look out for auto index cross 10900.
Stocks to watch out for if we see a bull run in auto stocks :
1) M&M
2) Escorts
3) Bosch
4) Ashok Leyland
I am particularly bullish on M&M.
Disclaimer : Bought M&M at 794
Autostocks
Maruti / M&M Spread As per Maruti / M&M spread chart. Maruti could outperform M&M from here onwards. A retest of 9 is possible provided 8.20 is not breached.
The pair chart is suggesting Maruti will rally more and fall less than M&M
Pair Spreads are high risk management set ups. They are not to be done in isolation but in sync. Those not affluent with them should refrain.
Buy BoschBuy Bosch if it close above 13650 (Safest Entry) stoploss 11910 Target 16000 to 16250
aggressive entry above Downward Trendline Breakout with few quantities.
study : Stock is forming Inverse Head & Shoulder Pattern near Downward trendline...if it breaks we can see 15-20% upside movement in this stock.
MARUTI The daily chart shows a beautiful wedge pattern with a tilt towards upward breakout. The weekly chart has shown a MACD uptick yet again and with closing above a strong resistance with good volumes the short term perspective is bullish.
Key Resistance at 6550,6620 and 6750.
Key Support at 6150 and 6000
Happy trading
K