Nifty Auto zooms, expects good sales numbers
We are at the doorstep of 2018 and that the trading the month of January 2018 would kick off with the auto sales data. The last trading day of 2017 witnessed a sharp upsurge in the Nifty Auto index may be ahead of good auto sales numbers to be released by Auto majors in the next week. The index surged nearly 1.3 per cent on Friday.
The movement was majorly driven by Tata Motors which holds nearly 14 per cent weightage in the index. Tata Motors closed 3 per cent up few sessions after the company announced that it would retain its 55 per cent market share in the medium and heavy commercial truck segment. The stock was able to break its major resistance at 433 levels. Secondly, Maruti Suzuki which holds 21 per cent in the index surged 1.1 per cent as the company is expected to post growth in its December sales and thereby set record closure for 2017.
Coming back to the index, it has formed a kind of Flag pattern on the daily time frame and thereby witnessed a breakout at 11950 in Friday’s session. The index may give further momentum in coming days with or without a pullback, where we hold 12030-12100 as the immediate resistance. 12600 is the medium-term resistance level for the index.