Global and other Asian markets have cheered after U.S. Federal Reserve came with a neutral stance along a dovish tone for future prospects. On domestic upfront, Nifty50 has witnessed some long liquidation after index gained by 140 points in previous trading session and a lackluster performance has been witnessed by the market as the 50-stock bundle is preparing for a pre-budget rally that is likely to take place in coming days. Of all the indices, Nifty Auto lost the most currently trading at 7,850.95, 1.44% below from its previous close. On daily scale, the index has formed a ‘Bullish Divergence’ pattern as the counter was continued with the lower highs and lower lows scenario but oscillators failed to follow the same and formed a higher low. The index is trading below 200 days Moving Average. A break above the psychological resistance of 8,000 levels will thrust the index for more upside. RSI is trading at 37.85 levels while MACD is trading in an oversold zone. Although MACD and RSI are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Maruti Suzuki India: India’s largest automobile producer is trading at 6405, 3.47% below from its previous close. There has been a block deal of 14,535 shares on June 19, 2019. The stock is trading below 200 days Exponential Moving Average.
- TVS Motors: Major two-wheeler producer is trading at 448.15, 2.30% below from its previous close. There has been a block deal of 107,773 shares on June 07, 2019. The stock is trading below 50 days Exponential Moving Average.
- Heromoto Corp: The stock is trading at 2,616, 1.78% below from its previous close. There has been a block deal of 90,033 shares on June 17, 2019. The stock is trading below 50 days Exponential Moving Average.