Sector Spotlight: This analyst remains bullish on auto stocks; picks Mahindra & Mahindra, Hero MotoCorp, Tata Motors DVR for gains

Technical Analyst Niles Jain remains bullish on the auto sector. He recommends three stocks which he said are expected to bring good returns for the investors. The stocks have been recommended with June series in the view

Stocks to Buy: Mahindra & Mahindra: Buy on Dips| LTP: Rs 964| Target: Rs 1150| Upside 20%

Sector Spotlight: Indian stock markets opened in the green on Monday. The benchmark indices BSE Sensex and Nifty50 were up over 1 per cent and were trading at 55,577.98 and 16555.20 respectively around 9:20 am. While the former was up over 600 points, the latter was higher by 200 points.

All 15 sectoral indices were trading positively around this time with Nifty Oil & Gas, Nifty Realty and Nifty Consumer Durables as top gainers.

However, Technical Analyst Niles Jain remains bullish on the auto sector. He recommends three stocks which he said are expected to bring good returns for the investors. The stocks have been recommended with June series in the view.

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Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking. Expects Nifty Auto Index to test levels between 11600 and 12000. He sees support at 10800. The index has given a breakout from the falling channel and a gradual upward move is expected from her, he added.

The Nifty Auto index ended at 11,403.25 and was up 1.2 per cent from the Friday closing price. All 15 stocks in the index were trading in the green around this time. The top gainers were Balkrishna Industries Limited, Tata Motors Limited, Eicher Motors Limited which were up 2.7 per cent, 2 per cent and 1.5 per cent respectively.

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Hero MotoCorp: Buy on Dips| LTP: Rs 2750| Target: Rs 2900| Stop Loss: Rs 2600| Upside 7%

One of his top picks in the auto sector is Hero MotoCorp. The stock traded positively on most occasions over the last 5-6 trading sessions and hence buying on dips is recommended and the right levels to enter this stock are between Rs 2660-2680. The counter looks strong on charts he said adding that it has been making higher tops and higher bottoms. The stock was nearly 1 per cent higher from the Friday closing price. Short term investors already holding this stock must retain it for above target price.

The stock was recommended at a price of Rs 2719.

Tata Motors DVR: Buy on Dips| LTP: Rs 212| Target: Rs 230| Stop Loss: Rs 192| Upside 11%

Jain’s second pick was Tata Motors DVR. He said that the stock has seen a base formation between Rs 180 and Rs 190. The stock was recommended at a price of Rs 207. Buying on dips is recommended at levels around the last closing price, Jain said.

Mahindra & Mahindra: Buy on Dips| LTP: Rs 964| Target: Rs 1150| Upside 20%

Mahindra & Mahindra shares are trading near their all-time high levels of Rs 986. Today, the shares were up 1.2 per cent in the early morning trade. Jain recommended this stock at Friday closing levels of Rs 952. He sees a resistance at Rs 980 which is also the breakout level in this stock. Buy on dips is recommended.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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