GOLDEN RULES FOR TRADING

Auto Stocks Outlook for the week -04 to 08.07.2016 (Bias positive; sales data, monsoon progress key)

Auto Stocks Outlook for the week -04 to 08.07.2016
(Bias positive; sales data, monsoon progress key)

The stock of major automobile companies are expected to trade with a positive bias next week, taking cues from sales data for June, optimism over the progress of the monsoon, and hope of above-average rains this season. The CNX Auto index may test the 9000-point mark, but is unlikely to exceed it, adding that the index was likely to hover around 8950 points.

While Maruti Suzuki India Ltd, Eicher Motors Ltd, and Ashok Leyland Ltd announced their sales numbers during market hours yesterday, Tata Motors Ltd and Hero MotoCorp Ltd announced their
numbers after market close. Bajaj Auto Ltd will announce its June numbers on Monday Hero MotoCorp's sales for June were flat at 549,533 units. Not withstanding the tepid numbers, the
company is optimistic on sales, stating in its release that the implementation of the Seventh Pay Commission's recommendations and a good monsoon are likely to spur growth.