The automobile stock is cruising along nicely even though the market mood seems to be on the downside. The stock with a market capitalization of Rs 1.2 lakh cr hit a fresh 52-week high of Rs 1057 on 2 June 2022.
The stock fell marginally on Friday when Nifty50 plunged by more than 270 points amid weak global cues.
The stock is in strong momentum and any dips in the stock should be used as a buying opportunity amid strong gains seen in automakers.
The S&P BSE Auto index has rallied more than 13 per cent in the last 3-months and over 4 per cent so far in 2022, and is just 5-6 per cent away from hitting a fresh 52-week high which currently stands at 27,271.
“While markets have been reeling under pressure, the auto pack has been doing well. To put things into perspective, the auto index is just 6% away from its record high,” Ajit Mishra, VP – Research, Religare Broking Ltd, said.
“M&M rose over 40% in the last 3 months. It has surpassed the resistance zone of a broadening formation after spending nearly one and half years. Besides, it has also reclaimed its record high of late,” he added.
The chart structure and positioning of the indicators are pointing towards continuation of the prevailing buoyancy.
“Positional traders & investors can accumulate within the 1000-1040 zone and hold for the targets of 1250. Traders should maintain the stop loss at 940,” recommends Mishra. The time frame could be 1-2 months.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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