As we can see Nifty Auto is trading in a rectangle pattern. A strong support is placed at 5000 level making it a psychological level as well. Nifty Auto seems to be moving in a sideways pattern.
1. A sustainable breakout above 5500-5600 will give this index a new leg.
2. The current Bollinger Band trend shows that the volatility is reducing.
3. RSI retraced from the level of 60 which acted as a resistance. The momentum seems to be weakening.
4. It seems to be taking support at the mean level of BB, and any weakness from here can take the index to the levels of 5150-5050.
5. Nifty Auto may underperform in the coming days and test its support zone.
1. A sustainable breakout above 5500-5600 will give this index a new leg.
2. The current Bollinger Band trend shows that the volatility is reducing.
3. RSI retraced from the level of 60 which acted as a resistance. The momentum seems to be weakening.
4. It seems to be taking support at the mean level of BB, and any weakness from here can take the index to the levels of 5150-5050.
5. Nifty Auto may underperform in the coming days and test its support zone.