GOLDEN RULES FOR TRADING

Automobile Stocks Outlook for the week – 25 to 29.04.2016 (Bias positive; Maruti Suzuki earnings eyed)

Automobile Stocks Outlook for the week – 25 to 29.04.2016
(Bias positive; Maruti Suzuki earnings eyed)

Shares of automobile companies are seen extending their gains next week ahead of
earnings announcements for the quarter ended March by Maruti Suzuki India Ltd. The
CNX Auto Index, which closed flat this week, may test the 8500 point mark, driven by
the positive mood created by predictions of an above average monsoon this year.

Maruti Suzuki, which will announce its earnings for Jan-Mar on Tuesday, is expected to
report a 10% on-year decline in bottomline to 11.5 bln rupees. However, the market has
already factored in these numbers and the company may see swift buying at its counters
next week.

Tata Motors, the country's largest auto maker by sales is likely to extend gains into the
next five trading sessions as well. The company's stock may well test 432 rupees with
support kicking in at 405 rupees.