Stocks of automobile companies are seen flat to mixed in the coming week with a positive bias for Tata Motors and Maruti Suzuki India. The auto stocks will also see some action due to build-up expectations for September volume numbers due on Oct 1.
Both Maruti and Tata Motors are likely to post strong volume growth, along with better margins starting H2 FY13 (second half of 2012-13) itself, and remain our top picks in the four wheeler space, followed by Hero Motocorp on reasonable valuations and dominant position in two wheelers. Maruti Suzuki stock was seen finding support at 1,250 rupees with major resistance seen at 1,350 rupees. Shares of Tata Motors will face resistance at 290 rupees with support at 260 rupees in the coming week
We expect positive on Mahindra & Mahindra as late revival of the monsoon is likely to aid spring season crop that will push tractor sales.Also, the forthcoming festive season is expected to push demand.
