Auto Sector Analysis K Karthik Raja Rupeedesk Share Market Training - 22.02.2025
Auto Sector Analysis K Karthik Raja Rupeedesk Share Market Training - 22.02.2025
Auto Sector Analysis K Karthik Raja Rupeedesk Share Market Training - 22.02.2025
Auto Sector Analysis - 22.02.2025
By K Karthik Raja
Key Factors Affecting & Reasons:
1. Market Trend: The index has witnessed a strong uptrend since 2020, with a peak in 2024, followed by a correction.
2. Moving Averages:
- The price is trading below the 50-day, 150-day, and 200-day moving averages, indicating bearish momentum.
3. Relative Strength Index (RSI): At 33.81, the RSI is near the oversold region, suggesting possible reversal signs.
4. Commodity Channel Index (CCI): -163.69, indicating the index is in an extremely oversold zone.
5. MACD Indicator: The MACD line is below the signal line, confirming ongoing bearish momentum.
6. Volume Analysis: There has been an increase in volume on recent declines, suggesting selling pressure.
Key Watch:
- Support Levels: 21,500 & 21,000
- Resistance Levels: 22,800 & 23,300
- Breakout Confirmation: A move above 22,500 could indicate bullish strength.
- Sector Rotation: Watch for fund movements in auto stocks.
Volume Analysis:
- Volume has picked up around key support levels, signaling potential accumulation.
- A spike in volume with price action could confirm a reversal.
Dow Theory Chart Analysis & Observations:
- The recent higher high & lower low structure suggests a downtrend.
- Parabolic SAR dots above price indicate continued bearishness.
- Long-term trendline support around 21,500 must hold to avoid further downside.
Stocks to Watch:
1. Maruti Suzuki (NSE: MARUTI) – Strong fundamentals but testing key support.
2. Tata Motors (NSE: TATAMOTORS) – Consolidating, awaiting breakout.
3. Eicher Motors (NSE: EICHERMOT) – Near trendline support.
4. M&M (NSE: M&M) – Key player in EV and SUV market, monitoring price action.
Market Insights (Short & Long-Term View):
- Short Term: Bearish; cautious trading recommended.
- Long Term: Positive; auto sector demand is expected to grow with EV adoption.
Disclaimer:
This analysis is for informational purposes only and should not be considered as financial advice. Please conduct your research before making investment decisions.
Online Stock Market Traning : Whatsapp : 9841986753
One to One Share Market Training : Whatsapp : 9841986753
RUPEEDESK SHARES
Rupeedesk Shares| Share Market Training | Intraday Training | Wealth creation
Stock Market Training for beginners,Technical Analysis on Equity,Commodity,Forex Market,Learn Indian Equity Share Market Share Market Trading Basics: Fundamentals Of Share Market Trading training, Stock Market Basics - Share Market Trading Basics,Share Market Trading Questions/Answers/Faq about Share Market derivatives,rupeedesk,learn and earn share Equity,Commodity and currency market traded in NSE,MCX,NCDEX And MCXSX- Rupeedesk.Contact: 9094047040/9841986753/ 044-24333577, www.rupeedesk.in)
