Nifty Auto index at all-time high, impressive 47 per cent upswing in a year!

Investors are likely reacting to the ongoing market dynamics, possibly influenced by the interim budget for 2024, contributing to the volatility.

In today's intraday trading, the Nifty Auto index opened at 19,351.85 and saw a fluctuation between the day's high of 19,559.55 and the low of 19,309.50. Currently trading at 19,531.35, it reflects a positive momentum with a 1.58 per cent increase from the previous close of 19,227.15.

Investors are likely reacting to the ongoing market dynamics, possibly influenced by the interim budget for 2024, contributing to the volatility. The index's performance indicates a notable uptrend during the intraday session, showcasing potential market optimism in response to the fiscal policy announcements in the budget.

The Nifty Auto index has reached an all-time high, displaying positive momentum in anticipation of the budget announcement. Maruti Suzuki India Ltd, Samvardhana Motherson International Ltd, and Eicher Motors Ltd emerged as the Top Gainers in the Auto index prior to the budget revelation.

A comprehensive analysis of the Nifty Auto's technical chart reveals an impressive 47% upward movement from the previous year, marking a remarkable trend. The index has consistently maintained its position above the 50-day Exponential Moving Average (EMA) since the low observed in April 2023. After a few months of consolidation, the index experienced another surge, surpassing its 50-day EMA and reaching new all-time highs. Over the last three months, the trendline has demonstrated a noticeable upward trajectory, further solidifying the index's strength.

Key technical indicators underscore the robust bullish trend. The Relative Strength Index (RSI) currently stands at 73.33, situated within the 50-80 range. This indicates a robust bullish trend in the market. Examining the Moving Average Convergence Divergence (MACD) oscillator, there are indications of a renewed or sustained uptrend. The slow and fast lines have already undergone a cooldown, pointing towards a continuation of the upward trajectory.

In comparison to the performance of the Nifty 50, the Nifty Auto index has exhibited outperformance, as highlighted by the CNXAUTO/NIFTY ratio chart. The technical analysis collectively points towards a strong and sustained bullish sentiment in the Nifty Auto index, supported by positive indicators and a compelling chart pattern.

Disclaimer: The article is for informational purposes only and not investment advice.