Vehicle scrappage policy, Ola e-scooter: How to trade key auto stocks

2. Tata Motors Ltd

Likely target: Rs 313.60 and Rs 319.75

Upside potential: 3% to 5%

The major breakout in Tata Motors' stock will be at Rs 360, which is the “Golden Cross” level for the counter, as per the weekly chart. The immediate resistance comes in at Rs 313.60 and then Rs 319.75 levels, which are its 100-DMA and 50-DMA respectively. As long as the support of 200-DMA, placed at Rs 273.60 levels is protected, the counter is likely to see a rally in the direction of the breakout mark of Rs 360. The Relative Strength Index (RSI) is out of the oversold territory indicating a positive strength.

3. Mahindra & Mahindra Ltd

Likely target: Rs 840 and Rs 875

Upside potential: 5% to 9%

A breakout above the significant resistance of the Rs 800 levels may lead to a decisive rally in the direction of the Rs 840 and then Rs 875 levels. The Moving Average Convergence Divergence (MACD) is attempting to cross the zero line, signaling a positive trend. On an overall basis, the stock has support at Rs 770 levels a closing basis.

4. Bajaj Auto Ltd

Likely target: Rs 3,928

Upside potential: 5%

The recent reversal in the scrip suggests that it is nearing the support of 200-DMA, currently set at Rs 3,734 levels. The charts are signaling an upside. Going forward, until the 200-DMA is held firmly, the stock may head in the direction of Rs 3,928 levels, which is the 100-DMA. The RSI is managing to sustain above the oversold territory, which indicates firm support of 200-DMA.

5.Hero MotoCorp Ltd

Outlook: support of Rs 2,728 may maintain a positive stance

After breaking 200-WMA at Rs 3,026 levels, the MACD dropped below the zero lines indicating negative momentum for the counter. The overall trend is weak. If the support of 100-WMA located at Rs 2,728 is broken, then the downside bias may turn into a full-blown bearish sentiment and the stock may see Rs 2,600 levels soon

6. TVS Motor Company Limited

Likely target: Rs 564

Upside potential: 5%

The recent weakness in the counter has seen it break its 50-DMA, 100-DMA and 200-DMA levels. This suggest a bearish build up. However, as long as the support of Rs 517 is held on a closing basis, which also is its 200-WMA, the upside bias may prevail from a medium-term perspective. The immediate resistance comes at Rs 564, its 200-DMA. Although, the RSI and MACD are trading in a negative crossover, until the TVS Motor Company upholds the 200-WMA, the outlook remains mildly bullish.