Top 2 Auto Stocks to Watch in May 2024

Nifty Auto Index Extends Its Winning Streak

The Nifty Auto index has extended its winning streak for the sixth straight month, gaining nearly 5% in April alone. In the last trading session of the month, the index climbed almost 2%, marking a robust performance. This achievement can be likened to Yuvraj Singh’s memorable innings against the England men’s cricket team in the T20 World Cup, where he hit six sixes in an over. Given this strong momentum, here are the top two stocks to watch for in the Nifty Auto index in May, based on seasonality analysis.

1. Hero MotoCorp Ltd.

Hero MotoCorp had a challenging month in April, with its stock declining by nearly 4%. Despite this, the stock managed to recover from its lows, as evidenced by the formation of a long lower wick on its candlestick chart. This rebound is partly attributed to the company’s recent announcement regarding the pricing for the 2024 Harley-Davidson motorcycle models across India, which are now available for ordering at all authorized dealerships.

The primary reason Hero MotoCorp should be on your radar in May is its historical performance during this month. On average, the stock has delivered gains of 8.28% in May, and in 16 out of 22 instances, it has closed in positive territory. This gives a positivity ratio of nearly 73%. Additionally, the stock has recorded five consecutive positive years in May, making it a potentially strong pick for the upcoming month.

2. Eicher Motors Ltd.

Shares of Eicher Motors surged by 14.4% in April, with the company’s Q3 FY24 performance showing strong growth at Royal Enfield and VECV. Eicher Motors recorded a record-breaking financial performance with its revenue, EBITDA, and PAT reaching new heights. This impressive track record adds to the stock’s appeal.

Eicher Motors also has a positive history in May, with an average gain of 14.69% during the month. Out of 22 instances, the stock has closed in green 16 times, and it has delivered consecutive positive years on four occasions. Given these trends, Eicher Motors is another stock to keep on your radar in May.

Overall, both Hero MotoCorp and Eicher Motors have demonstrated the potential to deliver strong performances in May, making them key stocks to watch in the Nifty Auto index.

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.