Looking for short term trading ideas in auto sectors? You may be wondering why I am asking you to invest in auto sectors. Well, the reason behind is the Nifty Auto Index has corrected sharply by more than 7% and also recovers from its low.
History tends to repeat itself in the stock market and so while analyzing I found that some of the auto stocks likely to go up from the current level.
Short Term Trading Ideas – Auto Sectors
I was looking to invest in those stocks and thought you might be interested in these short term trading ideas in auto segment. Fundamentally, these companies are good enough and you can expect 11% to 22% returns. Remember, these are only positional trading calls and so exit from them once you achieve the targets.
Ashok Leyland: Target – 165
Ashok Leyland manufactures medium and heavy commercial vehicles and relevant auto components. It develops different categories of vehicles that may be needed in defense, mining, construction, and distribution.
Currently, Ashok Leyland is trading at around 140 level and you may expect it to move up and touch 165. You can earn around 17% return while investing in Ashok Leyland from the current level.
Fundamentally, it has strong growth potential and technically almost all indicators are signaling a strong buy in it. All major technical indicators like RSI, MACD, Stochastic and MA are showing buy signal.
Tata Motors: Target – 375
Tata Motors is an automobile company and manufactures all kinds of passenger and commercial vehicles. It develops, design, manufacture, and assemble the vehicle and operates over 160 countries across the world.
Tata Motors is the most underperforming stocks in the past. However, I am bullish on it and expecting it to move up and reached 375 followed by 400. You can remain invested in Tata Motors for a longer period of time. For the time being, you can take 20% plus returns, if you are a positional trader.
Motherson Sumi: Target – 370
Motherson Sumi is a solutions providers to automotive segments and other industries. It offers services from design and prototyping to production and delivery of solution among different products. Moreover, it also offers wiring harness, high tension cords, plastic & rubber components, cockpit assembly and more.
Although, I am late to invest in Motherson Sumi as it has already moved up. But better late than never and I still believe that the stock may move further for a near-term target of 370. You may still earn up to 11% from its current level.
Escorts: Target – 1005
Escorts are in the business of agricultural tractors and construction equipment. It mainly manufactures Agri based machinery, auto components, railway & construction based products. Moreover, it also manufactures engines for tractors and earth moving equipment.
Escorts is one of my favorite stocks in automotive segments. However, the stock has already rallied and has corrected from its recent high. You can expect Escorts to move up and touch 1005 that may return you 13% on your investment.
JBM Auto: Target – 445
JBM Auto manufactures auto ancillary components, tools, and dies. Its product portfolio includes chassis and suspension parts, air tanks, fuel tanks, exhaust systems and complete cowl assemblies.
JBM Auto currently trading at around 386 and its near-term target is 445 that could return you 15% on investment. If your view is 12 months, then you may expect it to touch 550 also.
I hope these short term trading ideas lets you earn awesome returns. If you know any other positional trading call, then you can share it with us in the comment section.
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Published on: May 22, 2018