Amidst booming auto sector, here are top five stocks to keep a watch on!
The auto sector became the top performer on Thursday despite a weak market.
After a sharp gap-down by the Indian indices on Thursday, the auto sector has witnessed strong buying emerging at lower levels. Largely due to robust growth across commercial vehicles and expectations of good demand in passenger vehicles as the festive season commences, the auto stocks have seen a fresh buying interest from investors. Stocks like Ashok Leyland, Bajaj Auto, M&M, and Maruti Suzuki hit their fresh 52-week high levels on Thursday. Considering the bullish interest from the investors lately, here are our top five picks from this category you should bet on for the medium term!
TVS Motor Company: The stock hit a fresh all-time high after it soared over 3 per cent on Thursday. It has jumped over 6 per cent in the past three trading sessions. The volumes rose for the third consecutive day, and technical indicators show strong strength in the stock. The two-wheeler passenger vehicle is expected to see strong demand in the ongoing festive season.
M&M: The stock has formed higher highs and higher lows on the technical chart, which is a positive sign. It has broken out from its four-week consolidation pattern with above-average volume this week. The launch of Scorpio-N and XUV 700 has boosted the SUV demand and the company is likely to see strong growth in this segment.
Maruti Suzuki: The stock has registered a breakout from its 29-week cup & handle pattern. The volumes were good as it hits its 52-week high level. The four-wheeler segment has seen good demand despite rising fuel and loan costs. Known for superior engine quality, the stock is likely to see strong demand in near future.
Hero MotoCorp: The stock has been consolidating for over 10 weeks now. It is currently above all its key moving averages and the volume is good. With good monsoon this year, the company has seen good sales jump while the demand for budget two-wheelers is likely to grow. The stock offers an attractive dividend yield of over 3 per cent, which is an added benefit!
Tata Motors: The stock has broken out from its double bottom pattern with above-average volume. The demand for EVs is on a rise and the company is the front runner in four-wheeler passenger electric vehicles research & development. With superior build quality, the company is likely to see strong growth during the festive season.
Let us know which stock you hold in your portfolio!