level 10300 is where the stock is struggling to break and is been rejected
level 10250 is a fib level on daily time frame 61.8 per
if level 10250 breaks then the stock can go down till 9940(not in a day but in this week)
but if tomorrow get bullish then and breaks the level 10380 umm take 10400 thats better we can possibly see a uptrend move
Nifty Auto is now reacting from Monthly supply zone as well as there is a hamonic pattern.
Looking at current buying pressure this will be risky setup but lets observe how it will react.
Nifty Auto last week able to break our Shooting Star and now currently chart trading below the support level and we can see some major downside towards 9400 levels as per chart with the help of 10200 resistance level on the chart.
If Nifty Auto able to reclaim the 10600 levels again and sustain above this we can see some upside on chart.
In this video I have tried to discuss critical levels of Nifty and Banknifty and the rationale behind them. Also i have tried to squeeze couple of sectoral indices so as to have a better view to approach markets going ahead
Nifty Auto/Nifty relative strength chart (CNXAUTO/NIFTY) seems to have broken out of it long held weekly resistance. If this breakout goes through, we can see cyclical bullish trend on all major auto stocks. Looks like bullish times ahead for India's auto industry!
NSE:CNXAUTO
if know such skill then you can get perfect sector at right time to invest in and same way if you know such skill that will help you to disinvestment in same sector at right time , as right time entry is most important in such stocks( sectors) same way right time exit or partial booking profit also must required. keep earning keep learning.
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Nifty Auto last week tried to breakdown but not able to sustain and bounced the very next day and on Friday. The index was able to break ascending channel resistance. But this breakout did with shooting star which is a bearish pattern, so we need to wait here for both side confirmation.
Nifty auto, if able to break 10750 levels and sustain above this we can see...
As soon as index entered into previous supply bzone of 10560-11300, it encountered first supply. Pull back towards 9400-9200 might be an opportunity to enter fresh long. Auto is in clear uptrend. Once the supply in the zone gets completed then we'll see fresh highs.
Index Chart-
Nifty Auto-
Formations-
1. Index trading in ascending Channel
2. Index near resistance and zone selling seen
3. Reversal confirmation below 10000 level
4. 10300 is the resistance level.
Trendline Observation(s). A simple trendline breakdown on 30M Chart of CNXAUTO below 10090. I'm learning chart patterns as of now. You can plan your trades accordingly if you know how to trade these patterns.
Last high of NIFTYAUTO was dec 2017 at 12k , it still has 20% upside remaining to go to previous high. Auto sales are expected to grow. Aiming for 30-40% upside from here.
#Nifty #Auto Bounced from resistance turned support and looks equally strong relative to Nifty. Continued momentum in Nifty might see new highs made in Auto large caps. YoY Dec-20 quarter results are hinting at a recovery too
The chart compares Auto Index to IT index, as we can see the valuation of Autos compared to IT has reached lows of 2008. What we get to know from this is that either Auto index is under priced or IT has become over priced. My bias is that auto sector investments would return quite good returns 3-4 years down the line.
