Indian benchmark indices settled continued to fall on Wednesday amid the muted Q2 performance by India Inc, which may dent the premium valuations. The rising volatility in the global markets is also denting sentiments. BSE Sensex dropped 318.76 points or 0.39 per cent, to end the session at 81,501.36. NSE's Nifty50 tumbled 86.05 points, or 0.34 per cent, to close at 24,971.30 for the day.
Some buzzing auto stocks including Maruti Suzuki India Ltd, Tata Motors Ltd and Mahindra & Mahindra Ltd (M&M) are likely to remain under the spotlight of traders for the session today as Hyundai's Rs 27,856 crore IPO will close today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:
Maruti Suzuki India | Buy | Target Price: Rs 13,030 | Stop Loss: Rs 11,560
Maruti Suzuki has experienced a significant correction from its peak of Rs 13,741 and is approaching the 200-day SMA on the daily chart. This could result in a cooling down of technical indicators, placing them near oversold territory. The recent bearish price action may find strong support at the 200-day SMA, potentially signaling a reversal in the stock’s direction. This presents an opportunity for accumulation with an attractive risk-reward profile. Consider buying Maruti in the Rs 12,000–12,100 zone with a stop loss at Rs 11,560 and an upside target of Rs 13,030.
Mahindra & Mahindra | Caution | Resistance: Rs 3,220 | Support: Rs 2,870
M&M remained sideways for the last four-five weeks reflecting a pause in the ongoing bullish rally following the formation of bearish candles on the daily chart. The sentiment may continue to remain sideways due to the lack of a directional breakout or pattern formation. At the higher end, the level of Rs 3220-3250 might prove to be a crucial resistance level. A fresh rally is not anticipated as long as the stock remains below Rs 3250. On the lower end, support is evident near its 20-week SMA at Rs 2870-2850 zone.
Tata Motors | Sell | Target Price: Rs 860 | Stop Loss: Rs 950
Tata Motors is currently consolidating within a downtrend between Rs 910 and Rs 890, indicating indecision. A break below this consolidation range could signal accelerated selling pressure. Prices are trading near the lower Bollinger Band, suggesting the trend remains negative. The current trend is sideways; a 'sell on rise' strategy is recommended with an entry around Rs 920 and a target of Rs 860 as long as Rs 950 holds on the upside.