Maruti Suzuki India, Mahindra and Mahindra (M&M) are looking good in auto space. One can prefer both stocks over Tata Motors, says Shubham Agarwal of Motilal Oswal Securities.
Agarwal told CNBC-TV18, "Overall auto has been doing well but looking at Tata Motors it is underperforming. If you look at stocks like Maruti Suzuki India, Mahindra and Mahindra (M&M) they have been the top performers. So, we would like to bet on the stocks which are already doing well and has a further brighter prospect of doing well say for Maruti we have a target of around Rs 1650 on the stock."
He further added, "Specific on Tata Motors it is still in a very narrow band of consolidation. There is yet a confirmation to happen for a breakout which will be there after the stock surpasses the immediate resistance of Rs 285. So, I think once that level is cleared then we might be keen on buying that scrip. Auto overall we feel that there will be continued outperformance from that space but I still feel M&M and Maruti is a better bet than Tata Motors."