Stocks of automobile companies are seen tracking the broad market in the absence of any major triggers in the week starting Monday. Market participants will take cues from the July headline inflation based on Wholesale price index due for release Tuesday. The National Stock Exchange's 50-stock Nifty is seen finding support at 5250 points, while resistance is seen at 5380 points.
The automobile stocks are expected to remain on the softer side in the short term considering there is a lack of any positive stock-specific or macroeconomic triggers. Demand is likely to pick up post festive season, which starts from October. However, only improved domestic macro factors will ensure whether the demand sustains or not.
Stocks of Hero MotoCorp are seen facing resistance at 2,150 rupees and seen support at 1,790 rupees. Maruti Suzuki stocks will find support at 1075 rupees and resistance at 1,230 rupees. The scrip will also track any news flow regarding developments around the company's Manesar plant, which has been shut following labour unrest late last month. However, positive on Mahindra & Mahindra and pegged resistance for the stock at 770 rupees with support at 700 rupees. If the stock crosses its first resistance level, it could easily touch 820 rupees, Tata Motors stocks are seen finding support at 215 rupees and resistance at 252 rupees.
(www.rupeedesk.in)
