BSE Auto Index. As on Wed 7 April 2021. CMP 22,234. Posted at 12:45 pm.
Continued correction on the cards. The early Feb top of 25,072 is expected to be a temporary top. Correction is expected continue to the support zone of 16,700 ~ 18,600, which could be a buying opportunity for auto stocks.
We are neutral to bearish on the Auto Index until evidence to the contrary is provided.
The larger wave counts on the weekly and monthly charts are purely a working hypothesis.
The 3 day chart shows the 10 EMA on the verge of crossing below the 20 EMA, which would be a bearish confirmation.
BSE Auto Index. As on 22 Jan 2021. CMP 24,109
Conflicting signals. Elliott Wave count suggests a 5 wave up nearing completion, but other indicators are not showing any reversal signs. Hence we maintain a neutral position.
Ichimoku chart (Daily) shows price well above all indicator lines. Corrections are certainly possible, but there is nothing to suggest a major change of trend at the moment.
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10 period EMA has remained comfortably above the 20 period EMA suggesting trend remains comfortably up.
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Elliott Wave Count : This shows a possible 5 wave up at the completion stage, which could be warning of a potential correction.