As per the Auto Index chart, it is consolidating in a downward diagonal channel, but there are companies in auto sector, (industrywise) which may outperform due to their strong fundamentals.
In Automobile Sector - Leading Companies Industrywise
1. AshokLeyland (Commercial Vehicle)
2. Jamna Auto/Automotive Axles (Auto Ancillaries)
3. VSTTractors/ Escorts ...
Last month , Escorts made a head and shoulders pattern and broke below the neckline and tested the support level , had shared idea for short that time.
Now it has made an inverted H & S and broke the neckline today and might pullback to neckline next week , can go long after pullback or at CMP as long as it stays above 760.
Targets would be 800 and 820 respectively .