Auto stocks start August with a bang. Which stocks should you trade?
Premium- Two-wheeler stocks are the fastest growing companies in the auto sector. I believe they can rise higher.
After gaining 7.2% in July 2022, the bulls are going all-in on auto stocks. The auto index started the month of August with a big bang. It gained 3% in early trade today.
From the entire auto chain, two-wheelers auto stocks look promising. They offer the best bullish structure on the charts.
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We have created an Equal Weighted two-wheelers (2W) index (EW2WI). It’s our proprietary index.
The resistance has turned into a support (black horizontal lines). The higher high - higher low, a bullish structure on index, offers an excellent buying opportunity for traders and investors.
The Golden Cross bullish pattern is the sign of a long-term bullish trend. Technically, the setup is very bullish. Every dip seems to be a buying opportunity.
In fact, the break above the yellow dotted line can accelerate the bullish momentum.
These two wheeler stocks are the fastest growing companies in the auto sector.
Investors should be selective in this space because India’s best two wheeler stocks are already powering ahead.
Choose the best fundamentally strong stocks which can be multibagger stocks for 2025.
At present, the BSE auto index is trading higher by 2.6% at 29,500 level.
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Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
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(This article is syndicated from Equitymaster.com)
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