28/02/2016 [09:30 AM] Auto sector, an industry which represents all sector’s growth and development used as primary indication of change in economy either growth or slow down in any economy. In 2008-2009, this industry also affected and suffered to survive. After taken action of reform by government, this sector lead economy and outperformed. If we considered it as numbers than it have been given more than 500 percent return since January 2009 where some shares value multiply more than 10 to 20 time in during this time frame. Some of them are EICHERMOTORS (400 to 20,000), AMARAJABAT (15 to 850), APOLLOTYRE (15 to 150), ASHOKLEY (6 to 85), BAJAJ- AUTO (200 to 2200), BHARATFORG (75 to 750), M&M (120 to 1200), MARUTI (450 to 3500), TATAMOTORS (22 to 300) and TVSMOTORS (6 to260). I mention them because they all are well known and highly liquidate.
FY 2015-16, benchmark index of equity market gave around 20 percent negative returns and didn’t close any quarter in positive territory where Auto still outperformer in among sectors and stand around with around 10 percent negative returns during the time frame.
As I mentioned previous, it is first indication to know dept of any economy, its seem that India growth story still remain and current issue of other sectors will resolved very soon as this industry growth showing that demand still remain and thumb rule of economy says “There is demand where is no recession”.
On technical basis, Nifty Auto multiple support is at around 6500-6800 where its trade around 7100. According to my observation, most of indicator who represent consumption or demand of economy showing this down fall as only time being correction and now they are at their support area.
Conclusion: - Broader market can take time to show strength and increase sentiment which hurt by last one year down trend but down side is limited from current levels as we are very close to previous high which made in 2008 and we need to wait to break it to pass on statement on slow down.
02/06/2015 [09:00AM] According To Nifty Punch, micro and world economy condition not allowing RBI to give any relaxation to cut base rate. As per our observation, Monetary policy will be unchanged for this quarter.
14/01/2014 [09:40 AM] Growth and Investment always runs together, if they not walk on same way, it can be first indication of trend reversal. be smart......
Alert:- Team Nifty Punch advise to avoid long in equity or make only above 8450 (spot value of benchmark index Nifty).
05/01/2015 [10:40 AM] According to nifty punch, intermediate up move of benchmark index NIFTY has been completed. Advise to avoid long below 8500 or can make short position with stop loss of 8550 (future basis).
08/12/2014 [12:30 PM] Nifty Punch expecting a sharp down movement in equity market. Advise to hedge long position or can make short with strictly stop loss of 8585 (spot) on closing basis. According to us, market can test 7680-7400 in current series. Thanks Team Nifty Punch