There is very little in auto which would not give you good returns: Deepak Mohoni

In a chat with ET NOW, Deepak Mohoni, Director, trendwatchindia.com talks about the outlook for auto sector.

Does it seem that within the auto sector, there is a bit of a churn that is happening, technically on the charts?

The rankings in short term momentum have changed. Tata Motors is clearly running away with it. Maruti not doing too badly and Mahindra which was going against the market’s trend, market was falling, this was going up, this has taken a relative breather though the last eight to ten days have been quite good for the stock.

From the long term perspective, really not much to choose between a Tata Motors or a Mahindra. Bajaj Auto and Hero Honda defensives, they do not really go up in conditions like these. TVS is the momentum stock once it starts get going. All in all, there is very little in auto which would not give you good returns over the next few months if a bull market develops but they will rotate quite a bit within shorter intervals of time.