Shares of auto and auto ancillary companies were trading mixed in the afternoon deals on Wednesday following the August sales numbers announcement. Data released by a clutch of companies showed that automobile sales for most companies in India rose at a brisk pace in August over the same month last year.
Subrata Ray, senior group vice-president at ICRA, said the sales are being driven by rural demand as well as inventory restocking at dealerships ahead of the festive season. READ MORE
Here's a look at how shares of key auto ancillary companies look on charts.
Amara Raja Batteries Limited (AMARAJABAT): With the “higher high, higher low” formation on the daily chart, this counter is gradually rising with the support of 50-day moving average (DMA) currently placed at Rs 710 levels. As it manages to sustain above the significant moving average, one can view a positive crossover of 100-DMA and 200-DMA in the process. If this crossover succeeds, then an upside towards recent high of Rs 769 may be expected. CLICK HERE FOR THE CHART
Exide Industries Limited (EXIDEIND): The weekly chart indicates a formation of an ascending triangle pattern, which symbolises a positive bias. The breakout neckline is around Rs 175- Rs 180 levels, the breach of which indicates a rally towards the 200-weekly moving average (WMA) placed at Rs 203. A closing basis support stays at Rs 157 levels. CLICK HERE FOR THE CHART
CEAT Limited (CEATLTD): The price is currently hovering around 50-DMA and 200-DMA placed at Rs 889.70 and Rs 892.80, respectively. The trend looks promising as 100-DMA is defended strongly, currently placed at Rs 957.30 levels. Till the 100-DMA is protected, the upside bias should prevail. The immediate minor resistance is at Rs 920 levels. CLICK HERE FOR THE CHART
Apollo Tyres Limited (APOLLOTYRE): The recent trades suggested a stable upside for this counter above 200-DMA. Yet, as it started losing the upside strength, the price began to witness selling pressure. This sell-off is currently protected around 50-DMA, placed at Rs 117.80. So, the stock needs to cross 200-DMA, currently placed at Rs 127 levels, to regain the upside bias. If it breaches the 50-DMA, the price may see an increase in the selling pressure. Currently, technical indicators are showing weakness. CLICK HERE FOR THE CHART
JK Tyre & Industries Limited (JKTYRE): The counter is showing weakness as it trades below 200-DMA. The support is at Rs 59 on the closing basis, which is its 100-DMA. The volume has remained subdued, but the price is not showing any strength. To regain the upside sentiment, this counter needs to cross 65 levels decisively. CLICK HERE FOR THE CHART