Auto companies recently had a very good rally, They confirmed the Bottom formation as per the system and now All are near crucial Resistance, once they clear the resistance level then minimum 5-8% upside possible in quick time.

1. Nifty Auto Index : Formation Inverse Head & Shoulder Charts & Morning Star on Monthly Charts.
2. Tata Motors : Formation Inverse Head & Shoulder on Daily Charts & Morning Star on Monthly Charts.
3. TVS Motors : Formation Inverse Head & Shoulder & Morning Star on Monthly charts.
4. Maruti Suzuki : Formation Inverse Head & Shoulder.
5. Eicher Motors : Morning Star on Monthly Charts
6. Mahindra & Mahindra : No Formation, No Pattern.

Here I am using word “Formation” which is totally different from “confirmation”. A Technical pattern is complete only when you get confirmation of the trade. So wait for confirmations in next 1-2 weeks.

Nifty Auto Index  

Nifty Auto Index reversed from Demand Zone of 2015-2016, and it formed Morning Star formation, this morning star is very rare and Big kind of Reversal pattern, and it is forming on Monthly chart which have their own importance in Technical analysis. As per my rules and confirmation that is proper Morning star. Morning Star on Monthly candle is a kind of Bottom formation and Reversal.Inverse Head & Shoulder is now forming on Nifty Auto Index which is also a Bottom Reversal Pattern, whole formation still forming, confirmations will take time.

Tata Motors

After hitting decade low levels of 106, Tata motors reversed very fast, and on Monthly basis there was a Proper Pattern of Morning Star with all confirmation.On Daily charts there is a Formation of Inverse Head & Shoulder which will take time for confirmation.

TVS Motors

Morning Star on monthly chart is important for Bottom Reversal and that formed as per the Demand zone form Year 2014-2016.Inverse Head & Shoulder formation going on, A good upside of 6-10 % will be there after the confirmation of the pattern. Overall TVS Motors is mid-cap and will rally very fast. So add all these shares in your Watch-list.

Maruti Suzuki 

Maruti only have the Inverse Head & Shoulder Pattern which will take time for the formation. 

Eicher Motors 

Again same Pattern like it’s peers, Morning Star on Long term Demand Zone with all confirmation. Eicher have no other Bottom Reversal Pattern as of now, So you have to focus on Overall Nifty Auto Index to check the Proper Breakout.

Other shares Like Mahindra & Mahindra have no Proper Reversal Patter, Overall long term good, But there should be a Pattern so that we will get confidence to hold that share for long term.

It’s better to focus on above 5 shares to gain profit from Short-Medium Term trading. Wait for proper Breakouts then Take trade, Don’t try to run behind the share, Patiently wait for Breakouts.

Combination of Morning star (Monthly) and Inverse Head Shoulder good to complete a Complete Bottom Formation in stock/Index.

These are long term charts so it’s a slow process, rally will be there but patience require to gain the profit.