We are aware that the automobile industry is reeling under pressure and poor sales numbers are reflecting on all the auto stocks share price. Auto industry is seeking govt intervention to help them propel towards a healthier quarter. It is worth noting that vehicle sales in India is a key indicator of the economy and as of now it is showing a continued slump.
It is pertinent to note that Sales of Maruti Suzuki, India’s largest carmaker, declined 22 per cent — the highest since August 2012 in May 2019 and same can be attributed to people waiting for elections verdict. A cyclical slowdown is in offing as no increase in slaes figure has occured postt elections also and thus this industry is seeking govt help.
Thus, it is important to keep track of the support levels and one should avoid looking for value buying in a good quality stock as a falling stock is like a falling knife. Have a look at the chart of Maruti stock price which is now at key support and one should consider buying this stock only once it starts trading above the level of 7622. We had accurately caught Maruti stock in its uptrend when it was kissing 7500 levels and thereafter it hit 9832 levels. Thus getting on to the right stock at the right time is very important.
Other major auto stocks like Mahindra and Mahindra is also reeling under pressure and as of now, one should keep away from the automobile segment and can concentrate on day trading and can use hot stock for tomorrow to start making money on daily basis in a professional way or consider short term holding stocks as time always act in the favour of investors.