Bajaj Auto and Maruti look interesting in the auto space: Hemen Kapadia

Hemen Kapadia, CEO, chartpundit.com in a chat with ET Now gives his take two-wheeler and four-wheeler stocks.

Talking about the likes of a Hero Honda or a Tata Motors which have done fairly well, a special dividend by Hero Honda as well, do you think these have the legs to go up further, the likes of a Hero Honda from the two wheeler space or a Tata Motors from the four wheelers space?

In terms of two wheelers, I have a positive bias for Bajaj Auto because Hero Honda looks slightly tired in the sense stock has made a distinct new high vis-à-vis 1776 which are the intermediate high in 2000 and the MACD has not even come to its earlier high. So there is a distinct case of negative diversions coming in. Simply put, we could walk into a correction and the stock is getting heavy.

In terms of Bajaj Auto, one, we proceed at a fresh all time high. Even Hero Honda did know there is no denying that but the technical picture is better than the sense there is no negative diversions, it still seems good and in terms of four wheelers, Maruti is very interesting. We are in a falling wedge on the weekly charts. It could take four to six weeks more. It has not yet broken out on the upside but if that breaks out, that could be surprise mover on the upside.