Stocks to buy today: After the breakout in the BSE Auto index last week, most of the auto majors have been climbing at a brisk pace this week. In the last 5 sessions, the share price of Tata Motors has risen over 6 per cent while the shares of Maruti Suzuki have gained over 8 per cent in this period. The share price of Mahindra & Mahindra has gained over 4 per cent in the last 5 sessions, while the share price of TVS Motor has gained around 4.50 per cent over this time horizon.
According to Share Market Experts, After the Breakout BSE Auto IndexMost of the auto stocks have given breakouts, which is one of the major reasons for the rally in auto stocks. He said auto stocks are available at attractive valuations after the recent selloff due to the Russia-Ukraine volatility. He further said that the weakness in the markets in recent sessions is mainly due to weakness in the US economy. Hence, once the markets rebound, auto stocks will be one of the bullish engines in the Indian stock market.
Sumeet Bagadiya, Executive Director, Choice Broking, while speaking on the reasons behind the rally in auto stocks said, “After the breakout in BSE Auto index last week, most of the auto stocks have given breakout this week. Now, auto stocks are looking positive on the charts. .Paying upward momentum despite high volatility in the pattern and markets.”
Highlighting the fundamentals that supported auto stocks on Dalal Street, Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “In the post-Covid rebound, auto stocks remained non-participant as auto stocks have a direct link with the national economy. . Indian stock markets are volatile due to foreign triggers like Russo-Ukraine war, weakness in US economy etc. So, in the present scenario, there is nothing wrong with the Indian economy as the rupee was slipping due to the rise in crude oil prices. Now, crude oil has retreated from its recent high which may reflect its recent losses in rupee. Hence, once trend reversal auto stocks will be one of the major engines that is expected to drive the Indian stock market. ,
On auto stocks that one can buy at current levels, Avinash Gorakshakar of Profitmart Securities said, “High end four wheelers are expected to outperform two wheeler and basic model four wheeler sales. Hence, I suggest positional investors M&M Look at stocks as a potential addition to their stock portfolio.”
For short term investors, Sumeet Bagadiya of Choice Broking suggests buying the shares of TVS Motor expecting a rise of 10 per cent in the near term.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.