In our last article stocks have reacted as we expected RELINFRA | LEMON TREE. Today we are going to discuss automobile stock. The auto index has touched a lifetime high in November 2021 and after that, it is showing consolidation as well as a downtrend. However, the index has taken a U-turn from its major support of 9500 and now showing strength towards a lifetime high. We found MARUTI out of all auto stocks which showed strength in multiple time frames.
Monthly Chart: Maruti has given a breakout & confirmed INHS in January 2022. After the breakout stock has shown correction due to the Russia-Ukraine crisis. If we look at the last month's candle then it has shown good buying from the bottom and closed above the neckline support. The price shows upward from the same levels.
Weekly Chart: On this weekend stock has given a breakout and touched 8000 levels. There is Cup & Handle confirmation on the chart. Now strong support is around 7700 & 7400 and as per my study stock will touch 8800 levels in few months.
Daily Chart: Stock has taken two time support from its 200 DMA and finally crossed resistance level on 21st April. Volume has increased back to back in the last three trading sessions. The stock has given Cup & Handle plus Double Bottom breakout confirmation in a single candle.
The chart is looking very strong on all time frames, so we are bullish on the stock for Swing, Positional, and Medium Term from the current levels. It is a leading and large-cap company in the automobile sector.
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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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