Stocks to buy: Nifty Auto index has given a breakout at 11,000 level in Friday’s session, which has injected bullish sentiment on Dalal Street with respect to auto stocks. Post-Covid, auto stocks were among the segments that did not participate in the market rally. Hence, stock market experts are highly bullish on quality auto stocks provided Nifty Auto Index opens above 11,000 level on Monday and closes above 11,100 level on Monday next week. He advised positional investors to wait for a few more sessions and start accumulating auto stocks like Mahindra & Mahindra (M&M), Tata Motors, Maruti Suzuki India Limited or MSIL and TVS Motors.
Speaking on Fresh Breakout nifty auto index, Sumeet Bagadiya, Executive Director, Choice Broking said, “Nifty Auto Index had breached the 11,000 barrier in Thursday’s trading session, leading to a breakout at this level, but it failed to stay above this level and ended the 11,000 mark. However, on Friday, the index once again broke the psychological 11,000 level and closed above this breakout level, again giving a breakout at 11,000, but on a closing basis. If the index crossed the 11,000 mark on Monday. One can start accumulating quality auto stocks if it opens above the level of 11,100 and stays above the level of 11,100.”
shed light on the fundamentals driving the uptrend in auto stocks; Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “In the January to March 2022 quarter, auto companies have increased prices as raw material prices have reached alarming levels for auto companies. Quarterly numbers provided there is no dip in sales. Also, the unlock theme is also helpful for the auto sector till the fourth wave of covid hits India. Hence, due to better margins and easing of semiconductor issue. Based on this, auto stocks are expected to pick up momentum in the short term.”
On buying auto stocks, Avinash Gorakshakar of Profitmart Securities said that Mahindra & Mahindra (M&M) shares are available at discounted prices and are expected to rise faster than any other quality auto stocks.
Echoing the thoughts of Avinash Gorakshakar; Sumeet Bagdia of Choice Broking said auto stocks like Tata Motors, TVS Motors and Maruti Suzuki India can also be seen.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.