Auto Stocks Outlook
for the week – 18 to 22.07.2016
(Bias positive on
good rains, pay panel awards)
Next week, shares of major automobile companies are seen
extending this week's gains, aided by a
good monsoon and expectations of a rise in demand following
the implementation of the Seventh Pay
Commission's proposals
The CNX Auto index will remain well above the 9000-point
mark, reached this week, with resistance
seen at 9400 level. Support for the index is seen at 9050
points, they added. Maruti Suzuki remains
the pick of the auto stocks, given the company's strong
product pedigree, a healthy order pipeline, and
strong fundamentals. Currently, the company has a six-month
waiting period for the Baleno
hatchback and a seven-month one for its Vitara Brezza sports utility
vehicle.
