Stock Insights: Keep an eye on Tata motors and eicher motors before RBI policy, these 2 auto stocks can show further

By kiran jani

Auto stocks to watch: In September 2024, the Nifty Auto Index reached the Altime High of 27,696, then passing through the currents to a low of 21,835 in January 2025 and it fell by 18.20 per cent from peak as compared to the Nifty 50 Index during the same period during the same period. 11.50 percent declined.

With the decision of the upcoming RBI policy and Federal Reserve, it is expecting that both central banks will implement interest rates. Such a step will benefit the overall market, in which auto and realty sector are expected to benefit the most.

Given this backdrop, Eicher Motors and Tata Motors show a strong technical setup, which makes them attractive for investment.

Types of technical setup

There are two major types of trading setups in the stock market:

Continuity pattern: A trend is formed, it indicates that it will continue (for example, a bullish pattern indicates an uptrend).
Reversal Pattern: Looks at the end of a trend, which indicates the reversal of a trend (for example, a bearish trend turns into a bullish).

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1. eicher motors:

From June 2024 to December 2025, Eicher Motors remained in the consolidation phase, which gave a minor 7 percent return. However, technical indicators indicate possible breakouts:

Esing Triangle: A pattern of a rapid continuity indicating the strength of the trend.
Bounce in volume: The rising price and volumes confirm a successful breakout, indicating the upside.
RSI Bullish Zone: The 14-Ardor is in the RSI Bulish Zone, which supports the upside Momentum.

Outlook

In early January 2025, Eicher Motors came out of its consolidation / asanding triangle pattern to reach a new high of Rs 5385. However, it failed to maintain the breakout and returned to the triangle. Now, the stock is moving upwards again, another breakout is close to the attempt.

If a level of Rs 5,000 remains in the form of support, this setup indicates a possible bounce in the near future.

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2. Tata Motors

Tata Motors held a strong rally in the beginning of 2024, in August 2024, it gained 45 per cent before the fall of Rs 1,179. The Daily Chart is now indicating a new speed trend, which is being supported due to these reasons:

Bullish Reversal Pattern: A reversal pattern is formed at the lower level of stock.
Falling veg formation: The stock is on the verge of breakout from this fast setup.
RSI strengthening: 14-RSI of the RSI has shown the Bulish Diversion, which supports the upside.

Both stocks offer strong technical setups for potential speed.

Outlook

In the last six months, after the taxes ranging from Rs 1,179 to Rs 700, Tata Motors has completed his currency phase and is now trading in a strong acuble zone. Many short -term and long -term support levels indicate a huge possibility of moving upwards from here.

If a level of Rs 700 remains as support support, this setup indicates a possible bounce in the near future.

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Auto Stock: Preparation of a strong future

Since the beginning of 2024, most central banks have been cutting interest rates, while RBI has maintained its stand throughout the year. However, with recent CRR cuts, the upcoming policy is likely to cut the repo rate.

Interest rate cuts are expected to have positive impact on the broad market, in which the auto and real estate sector are expected to benefit the most. From a technical point of view, Eicher Motors and Tata Motors indicate strong boom, making them important stocks for traders and investors.

Disclaimer:

Note : The purpose of this article is only to share interesting charts, data points and thought providing opinions. This is not a recommendation of any investment. If you want to consider investment, then you are advised to consult your advisor. This article is only for educational purposes.

According to SEBI guidelines, the author and his dependents may have or not to have any other assets discussed here. However, customers of Jainam Broking Limited may or may not be the owner of these securities.

Kiran jani Has experiences more than 15 years as a trader and technical analyst in India’s financial markets. He is a well-known face on business channels as a market expert and has worked with Asit C Mehta, Kotak Commodities and Axis Securities. Currently, he is the head of the technical and derivative research desk in Jainam Broking Limited.

Disclosure: The writer and his dependents do not hold the stocks discusated here. However, clients of jainam brooking limited may or may not own these secondies. The website manners, its employee (s), and contributors/writers of articles have or may have an outstanding boy or sell positions in the seconds, Options on SECURITIES Ments of Issuers and/Or Companies Discussed Therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/ authens. Investors must make their own investment decisions based on their specific objectives and resources, and only after consulting such indexent advisors if necessary.

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