Three auto stocks to buy: Ankush Bajaj's expert recommendations for 24 April
Summary
Top three auto stocks to buy today: Discover Ankush Bajaj's expert stock picks for 24 April.
The Indian stock market witnessed a day of twists and turns after opening with a strong gap-up on 23 April. The Nifty 50 started the session on a positive note, fueled by upbeat sentiment and steady inflows, but faced resistance early in the day, triggering a mild pullback. However, buyers stepped back in during the second half, helping the index regain momentum and break above the 24,300 mark by close.
Three stocks to buy today, as recommended by Ankush Bajaj:
Ashok Leyland Ltd (current price: ₹230.70)
Why it’s recommended: The stock has given a rectangle breakout on the hourly chart. Also, it has broken the upper channel of the falling wedge pattern. RSI is also positive, expecting a good rally in this stock.
Key metrics: Breakout level: ₹230 | Chart pattern: Rectangle breakout + Falling wedge channel | Time frame: Hourly
Technical analysis: A technical breakout along with bullish chart patterns and a positive RSI suggests upside momentum. The stock is likely to move towards its next resistance levels.
Risk factors: Auto sector stocks may face price volatility due to raw material cost changes, monthly sales fluctuations, and macroeconomic conditions.
Buy at: ₹230.70 | Target price: ₹238– ₹242 in 1–2 weeks | Stop loss: ₹227
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Eicher Motors Ltd (current price: ₹5740)
Why it’s recommended: After making a recent high near ₹5,900, the stock corrected and has now taken support around the ₹5,700 level. A bounce from this support zone is visible, and the stock is expected to retest the ₹5,900 levels soon.
Key metrics: Support level: ₹5,700 | Chart pattern: Support-based reversal | Time frame: Hourly
Technical analysis: The stock has shown signs of strength after a healthy correction from recent highs. The strong support at ₹5,700 and bullish reversal pattern suggest potential upside in the near term.
Risk factors: Auto sector stocks may experience volatility due to demand fluctuations, supply chain disruptions, and rising input costs.
Buy at: ₹5,740 | Target price: ₹5,780– ₹5,800 in 1–2 weeks | Stop loss: ₹5705
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Mahindra & Mahindra Ltd (current price: ₹2918)
Why it’s recommended: The stock’s RSI on the lower time frame is trading above 60, indicating bullish momentum. It has also closed above an important level, which was the recent high of ₹2,900. Additionally, volumes are supporting the uptrend.
Key metrics: Breakout level: ₹2,900 | Chart pattern: RSI strength + Volume supported breakout | Time frame: Hourly
Technical analysis: A close above the previous high with strong RSI and supporting volumes suggests continuation of the bullish trend. The stock is likely to test higher resistance levels soon.
Risk factors: The auto sector stocks may face risk from regulatory changes, commodity price fluctuations, and sector-specific headwinds.
Buy at: ₹2,918 | Target price: ₹2,998– ₹3,010 in 1–2 weeks | Stop loss: ₹2,868
Market Update: The Nifty stages comeback after mid-day dip, closes above 24,300
The Nifty 50 ended the session up by 161.70 points (0.67%), settling at 24,328.95, while the Sensex jumped 520.90 points (0.65%) to close at 80,116.49. The index remained within a band of 24,000 to 24,300 for most of the session, showcasing a tug-of-war between bulls and bears before a late surge sealed a strong close.
Nifty Bank closes lower
Meanwhile, the Nifty Bank experienced a contrasting session. Despite testing the 56,000 level, it faced stiff resistance and gradually declined through the day, closing lower by 277.15 points (0.50%) at 55,370.05.
Sector view: Rotation in play
A clear sectoral rotation was visible in today’s market action. Auto and pharma stocks took the lead, while financial and PSU-linked counters showed signs of fatigue. The auto index rallied 2.38%, with investor confidence buoyed by strong demand trends. Pharma followed suit with a 1.40% jump, reflecting optimistic earnings expectations. Healthcare stocks gained 1.34%, underpinned by continued global and domestic demand.
On the other hand, profit-taking was evident in some defensive and financial names. The finance index dipped 0.67%. PSU Bank stocks lost 0.57%, and the broader banking index ended 0.50% in the red.
Stock action: HCL Tech stands out
In stock-specific action, HCL Tech delivered a standout performance, surging 7.71% on a strong earnings outlook. Tata Motors climbed 4.66%, boosted by consistent retail traction. Tech Mahindra rose 4.58%, backed by positive sentiment in rural and financial segments.
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However, not all stocks joined the rally. Grasim slipped 2.32% after releasing underwhelming quarterly results. HDFC Bank dropped 1.93%, reacting to earnings numbers. Kotak Bank shed 1.84%, as traders rotated out of financials into higher beta names.
Indian stock market outlook
On the daily chart, as we discussed earlier, 23,200 is an important level to watch. Above this, we might see 24,670. The reason is 23,670–24,780 was the origin of fresh selling. We have seen a fall till below where we touched the 22,000 mark, and now the next level to watch will be 24,700 level, which might act as a resistance. Still, we have more 350–400 points to reach that level.
RSI at 67 is still on the bullish side with signs of divergence, and MACD is also towards the bullish side, indicating strong momentum on the Nifty Index.
Today is the expiry for Nifty Weekly and also the Monthly expiry for the Nifty Bank.
If we closely observe the Open Interest (OI) data:
On the call side, the highest OI is at 24,300 and 24,500, while we closed near 23,300. This clearly indicates that 24,500 is a significant resistance zone, with 24,300 acting as the first hurdle.
On the put side, the maximum OI is seen at 24,200 and 24,000, which should act as immediate support levels.
Yesterday, the Nifty outperformed the Nifty Bank, mainly due to a strong recovery in IT stocks.
The Nifty on the hourly chart is in the overbought zone. MACD is showing bearish signs and RSI is at 75, indicating an overheated zone.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
