Pricol, Minda: Here's why you should consider buying auto ancillary stocks

According to the technical charts, auto ancillary stocks, like Talbros Automotive, Jupiter Wagons and Minda Industries are likely to rise another 15 per cent in the upcoming trading sessions.

Shares of automotive components were in limelight on Thursday as they set foot alongside the auto stocks, which exhibted a robust rally in the recent market pullback.

Talbros Automotive Components zoomed 14 per cent, while Jupiter Wagons and Varroc Engineering soared over 5 per cent each in intraday deals. 

Minda Industries, which, jumped 8-fold in the post Covid-19 bull run, was seen holding a steady 1 per cent gain. Similarly, shares of Pricol too was up nearly 2 per cent.
 

Here’s the technical outlook for auto ancillary stocks for upcoming sessions:-

Talbros Automotive Components Ltd (TALBROAUTO)

Likely target: Rs 560

Upside potential: 10%

Shares of Talbro Automotive Components observed a sharp reversal after dipping under the 200-day moving average (DMA) set at Rs 412. Following which, the Moving Average Convergence Divergence (MACD) has risen over the zero line, and is now pointing at a bullish momentum. The stock has strong support at its 50-weekly moving average (WMA), and as such the bis is likely to remain positive as long as the stock holds above Rs 396. The pullback could see a rally towards Rs 560, the next hurdle mark. CLICK HERE FOR THE CHART

Jupiter Wagons Ltd (JWL)

Likely target: Rs 63

Upside potential: 15%

The stock holds the support of 200-DMA established at Rs 44.50 level. The broader outlook is positive and a robust close above the Rs 55-mark, its 50-DMA could see fresh breakout in the direction of Rs 63, shows the daily chart. CLICK HERE FOR THE CHART

Varroc Engineering Ltd (VARROC)

Outlook: Positive bias over the oversold territory

Varroc Engineering has risen from the oversold territory suggesting further upside and a positive strength ahead. Last time, the stock rose significantly when it move over the bearish territory. The immediate support comes at Rs 285 and the counter could jump towards 340 level.   CLICK HERE FOR THE CHART

Pricol Ltd (PRICOLLTD)

Outlook:  Stock likely to resume the upward trend

Shares of Pricol have overcome the 200-DMA hurdle, positioned at Rs 117.50 and seek to resume the upward trend, show the daily chart. The immediate support for the stock exists at Rs 122 and the up move above the zero line of MACD, further suggests a bullish bias. The next hurdle is at Rs 140 level.  CLICK HERE FOR THE CHART

Minda Industries Ltd (MINDAIND)

Likely target: Rs 1020

Upside potential: 9%

Minda Industries has seen a positive divergence on Relative Strength Index (RSI) close to 200-DMA level, this signals a likely up move for upcoming sessions. The 200-DMA is placed at Rs 929. The immediate support stands at Rs 900 and the stock may rally towards 1,020, its next obstacle, according to the daily chart.  CLICK HERE FOR THE CHART