NIFTY Trend Score

NIFTY

The NIFTY has entered into a short term uptrend while the long term trend remains down as the 2 weeks moving average is still trading below 52 weeks moving average. The Index will enter into a long term bull trend provided it sustains prices above 5200 level for the next few days.

The downtrend of BAJAJ-AUTO is slowly reversing as the stock is signaling a medium term uptrend after yesterday’s rise. However, the long term trend of the stock is still down and a sustained price action above 1650 level will help change the long term outlook.

RANBAXY is looking good on the charts. The stock is showing uptrend on long term basis while it entered into a short term uptrend yesterday. Going forward, we expect the stock to trend higher and test its major resistance zone in the region of Rs 510-530. The major support level is visible at Rs 480.

 

Indian Auto Sector Trend Score

Auto Sector

The Indian auto sector is showing weakness as two major outperformers (BAJAJ-AUTO and TATAMOTORS) are turning weak while HEROMOTOCO, TVSMOTOR and MARTUI are under stress long ago. We don’t expect gains in the near term and advice investors to sell the rise in prices.

BAJAJ-AUTO

The long term uptrend of BAJAJ-AUTO may turn into a downtrend if it fails to go beyond 1650 resistance. The stock, after enjoying secular uptrend for the past for 42 months, is showing lack of velocity on the upside. Recently both 2 weeks moving average and 12 weeks moving average are trading below 52 weeks moving average indicating the uptrend is getting weaker.

In our view, a lot is dependant on its ability to breach 1650 resistance on the upside. If the stock fails to trend higher from here, chances of this downward trend gathering momentum and we may see BAJAJ-AUTO heading towards 1450 and 1200 support.

We recommend selling rise in BAJAJ-AUTO till it clears the 1650 resistance on the upside or the moving average setup indicates a turnaround.

HEROMOTOCO

  

As the chart is indicating, the stock is showing no trend. An eitherway breakout is required to guage the direction. Stay out for now till we see an eitherway breakout. If you have the stock, put a protective stoploss at Rs 1728 (the bottom of the range).

TVSMOTOR

The maker of scooty is showing a solid downward trend and there is nothing special on the chart which indicates a turnaround. Sell on rise. 

MARUTI

The stock is making lower highs and lower lows for the past 34 months. We expect lower prices in the near term as the 2 weeks moving average is trading below both 12 and 52 weeks. The major support is placed at Rs 1050 and Rs 900 level. Major resistance zone is at Rs 1250-1400. Sell on rise

TATAMOTORS

 

Better chart compared to MARUTI. Recently, the stock triggered a long term sell signal as moving average setup turned negative. We expect losses to continue in the near term. Sell on rise till the setup indicates a buy.