Auto stocks looking stronger; buy M&M, Bajaj Auto: Analyst

" Auto space will perform better in the near future. Some of the auto stocks will move back to previous highs,"says Ashwani Gujral, Market Strategist.

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com

I would still remain with Bajaj Auto. Hero Honda remains in that range of 1500-2000 but Bajaj Auto after a deep correction is now moving back towards previous highs. So probably get back into Bajaj with a stop of about 1400 odd and look towards target of 1600-1620. Hero Honda will remain choppy because it still needs to be established that how well they would do after Honda going away.


This probably looks like the strongest auto stock and after a good correction to about 580, it seems that it could retest its previous highs of 815 to about 820. So on any declines, this is the first auto stock that you would like to buy.

It has corrected quite severely. So in terms of the chart, it has corrected down to 45-46 from where it started moving higher. So the risk obviously is lower. In case the market is going back towards 6100-6200 you could easily see levels of 70 to 75 on Ashok Leyland because if rates start coming down, Ashok Leyland probably will see benefit.