The Indian Benchmark opened on a slight positive note and resumed falling making an intraday low of 10739.4, market didn’t cheer below expectation results from giant IT firm ‘Tata Consultancy Services’ and use every opportunity to execute short positions in index futures. Out of 2062 stocks, 632 are advanced, 1030 are declined and 400 are unchanged. A strong support is placed near 10751.55 in index futures as per symmetrical triangle on daily scale.
Nifty Auto, one of top laggard of the day is trading near 8837.75, 1.08% below from its previous close. The index has been punished by the market after Tata Motors delivered bad numbers in auto sales in December. On Daily chart, Nifty Auto is trading in an ‘Inverted Flag’ pattern which is a trend following pattern, shows that more pain is yet to come in automobiles. The index is trading below 25 days moving average. Awesome Oscillator is trading in an oversold zone. Although Awesome oscillator and Moving Average are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, and Candlesticks Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Tata Motors: Top laggard of Auto index is trading at 180.2, almost 3% low from its previous close. Tata Motors' total group global wholesales reduced 13.9 percent, YoY. JLR group global wholesales at 45,474 units. There has been a block deal of 747,991 shares on January 07, 2019.
- Mahindra and Mahindra: Major commercial vehicle producer is trading at at 723.25, 1.36% below from its previous close. On January 07, 2018 U.S. court continued investigation as Fiat Chrysler has accused M&M of using the grille design of its Jeep model on the Roxor off-road model built and sold by the Indian company in the US.
- Maruti: India’s biggest carmaker ‘Maruti’ is trading above 50 days moving average. Retail Car sales have witnessed a steep fall of 3% in December. The stock has seen a fall of 1.30% from its previous close.