Nifty Auto

Few weeks back an auto ancillary major announced the opening of two plants for Electric Vehicle space only. Probably this is just the beginning, more auto ancillary companies, some of which have been readjusting their business model toward EV space, would be announcing it sooner than later. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Mahindra & Mahindra (M&M) has reported a 17% increase in its auto sales for September 2023, with overall sales reaching 75,604 units. Passenger vehicle sales saw a growth of 20%, while utility vehicle sales also increased by 20%. However, M&M had no sales of cars and vans last month. The company attributed the strong demand for SUVs but expressed concerns about the availability of semiconductors and select components.

Jefferies maintained a buy rating on L&T with a target price of Rs 3050. H1 should see order flow traction as elections drive front-ended FY24E order flow.

Maruti Suzuki India is aiming to achieve a leadership position in the SUV segment by the end of the current financial year. The company is also focusing on the electric vehicle segment and plans to have six EV models that would contribute 15-20% to total sales by FY31. Motilal Oswal Securities has a bullish outlook on Maruti Suzuki and has a "buy" rating on the stock.

Maruti Suzuki India has reinforced its sports utility vehicle portfolio with the launch of two more models, amid the growing preference for SUVs among customers. The company aims to achieve market leadership in the SUV segment in FY24. Sneha Poddar of Motilal Oswal Securities holds a positive view on the stock and sees 18% upside in the next 12 months. Fundamental Radar I SUV push to aid Maruti Suzuki, stock may see 18% upside, says Sneha Poddar

If one has to go by recent indications from management of different auto companies, the mood in the industry is positive about the forthcoming festive season. For the auto industry, headwinds like rising input cost, stagnant demand are becoming things of the past for the majority of them. Now if the festive season goes well, then auto stocks might see another push. Though if the metal prices start to rise some companies might face minor issues with their margins. So while being bullish, being watchful.

Maruti Suzuki India Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 319848.41 Crore) operating in Auto sector.

The Nifty started off on a flat note after trading flat in the first hour of the session. Later it slipped into negative territory from a low point of the day near 19,600 levels. A recovery followed; the index rebounded over 125 points from its low level. This recovery was not sustained and after spending the remainder of the session in a capped range, the headline index closed flat with a negligible gain.

On September 22, Friday, StockEdge identified 40 stocks that were trending up, and ETMarkets has selected 10 among them for a closer look. This article explores the importance of the Relative Strength Index (RSI), a key indicator, and delves into the 10 stocks with upward-trending RSIs.