Last weekend the government notified vehicle scrappage policy and Ola launched its e-scooter. In this backdrop following are the tips for the trading of auto stocks:
1. Maruti Suzuki India
The shares of Maruti Suzuki India are trading below both the major moving averages i.e 200-days moving average (DMA) and 200-weekly moving average (WMA) placed at Rs 7,215 and Rs 7,293 levels, respectively. This breakdown shows a negative bias that may lead to bearish sentiment in the days ahead, if crucial support of Rs 6,758 is broken, which is its 100-WMA. The immediate support comes in at Rs 6,900 and then Rs 6,850 levels.
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