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Nifty Auto Zooms: Ends Four-Day Losing Streak

25 June 20246 mins read by Angel One
On Monday, the Nifty Auto index rose by 0.87%, ending its 4-day losing streak. Prior to this, the index had plunged almost 2.47% after registering an all-time high of 25,991.45 on June 18
Nifty Auto Zooms: Ends Four-Day Losing Streak
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The Indian stock market staged a smart recovery from lower levels and ended the first trading session of the week on a positive note. The NSE Nifty50 index advanced 0.16%, while the Sensex gained 0.17%.

Nifty Auto Index: A Strong Comeback

Among the top-performing sectors on Monday was the Nifty Auto index. On Monday, the Nifty Auto index rose by 0.87%, ending its four-day losing streak. Prior to this, the index had plunged almost 2.47% after registering an all-time high of 25,991.45 on June 18.

Major Movers: Mahindra & Mahindra and Ashok Leyland

Interestingly, the majority of Auto stocks ended the Monday session in green. Leading the pack was Mahindra & Mahindra (M&M), which gained 2.67%, followed by Ashok Leyland with a gain of 1.97%. M&M, which has the highest weightage in the Nifty Auto index, has climbed 267% over the last three years. Ashok Leyland has also shown impressive growth, rising about 95% in the same period.

Technical Indicators 

On the daily chart, the Nifty Auto index has formed a bullish candle and is trading above its 20, 50, and 200-day moving averages (DMA). The 14-period Relative Strength Index (RSI) remains in super bullish territory; during the recent correction phase, the RSI did not slip below the 60-mark on the daily chart.

Impressive Year-to-Date Performance

In June alone, the Nifty Auto index has added 8.23%. For the year 2024, the index has gained an impressive 36.15%. This performance is notably stronger than the Nifty50 index, which has risen by 8.35% in the same period.

Conclusion

The Indian market’s recovery, led by the strong performance of the Nifty Auto index, highlights the sector’s resilience and growth potential. With key stocks like Mahindra & Mahindra and Ashok Leyland driving gains, and technical indicators showing continued strength, the Auto sector’s impressive year-to-date performance underscores its significant outperformance compared to the broader market. As the Nifty Auto index continues to climb, it remains a key area of interest for investors looking to capitalize on this momentum.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

The Indian stock market staged a smart recovery from lower levels and ended the first trading session of the week on a positive note. The NSE Nifty50 index advanced 0.16%, while the Sensex gained 0.17%.

Nifty Auto Index: A Strong Comeback

Among the top-performing sectors on Monday was the Nifty Auto index. On Monday, the Nifty Auto index rose by 0.87%, ending its four-day losing streak. Prior to this, the index had plunged almost 2.47% after registering an all-time high of 25,991.45 on June 18.

Major Movers: Mahindra & Mahindra and Ashok Leyland

Interestingly, the majority of Auto stocks ended the Monday session in green. Leading the pack was Mahindra & Mahindra (M&M), which gained 2.67%, followed by Ashok Leyland with a gain of 1.97%. M&M, which has the highest weightage in the Nifty Auto index, has climbed 267% over the last three years. Ashok Leyland has also shown impressive growth, rising about 95% in the same period.

Technical Indicators 

On the daily chart, the Nifty Auto index has formed a bullish candle and is trading above its 20, 50, and 200-day moving averages (DMA). The 14-period Relative Strength Index (RSI) remains in super bullish territory; during the recent correction phase, the RSI did not slip below the 60-mark on the daily chart.

Impressive Year-to-Date Performance

In June alone, the Nifty Auto index has added 8.23%. For the year 2024, the index has gained an impressive 36.15%. This performance is notably stronger than the Nifty50 index, which has risen by 8.35% in the same period.

Conclusion

The Indian market’s recovery, led by the strong performance of the Nifty Auto index, highlights the sector’s resilience and growth potential. With key stocks like Mahindra & Mahindra and Ashok Leyland driving gains, and technical indicators showing continued strength, the Auto sector’s impressive year-to-date performance underscores its significant outperformance compared to the broader market. As the Nifty Auto index continues to climb, it remains a key area of interest for investors looking to capitalize on this momentum.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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