Nifty Auto has been on our radar for quite some time now. When Nifty50 was under short term pressure, Nifty Auto was one of the sectors that stood out as a strong performer.
With the ensuing move in the Auto stocks, we thought of doing a deep dive into this sector to see if we could find some actionable setups.
The Auto sector has closed comfortably above the resistance level of 10,400 effectively absorbing overhead supply at these levels. In the weeks and months ahead, this sector could make a dash towards the level of 12,110. The strong bullish momentum regime indicated by RSI alludes to the same view.
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Relatively speaking, Nifty Auto has broken out of its resistance zone and is ready for the next leg of the rally.
Now let’s take a look at some actionable ideas at current levels that look attractive on the long side for the next few weeks and months.
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