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.