EquityPandit’s Outlook for NIFTY Auto for the week (May 13, 2019 – May 17,2019):
NIFTY AUTO Index closed the week on negative note losing -288.25 Points -3.44%
Weekly High: 8415.50
Weekly Low: 8049.80
Weekly Close: 8093.20
Nifty auto sector seems to be trading near to very crucial support levels which lies at 8050– 8000, this can be a good opportunity to go short in auto sector, auto ancillaries, and its major constitutes like Mauti, HeroMotoco, TVS Motors, Eicher Motors, Tata Motors, M&M, Mothersumi, ISUZU etc.
Technically on the daily charts we see minor support on the downside for index lies at 8050– 8030 levels, whereas minor resistance on the upside is capped around 8380– 8400 levels.
If Nifty Auto Index breaches minor support on the downside and closes below it we may see fresh break down and index can drag index towards major support on lower side around 7700– 7750 and if breaches minor resistance on the upside and closes above it we may see fresh breakout and index can head towards higher levels around 8600– 8630
Currently Nifty Auto Index is trading below 200 days exponential moving average suggests long term trend is bearish. EquityPandit’s analyst predicts range for the week is seen from 8600– 8630 on upside and 7750– 7750 on downside.