Narnolia Financial Advisors recommends to start investing in the auto sector. It is expected that Nifty Auto will converge towards Nifty very soon, it said.
Market closed the Monday session in the green with Nifty50 closing 47 points higher at 11,690 while the Sensex ended 138 points at 38,905 mark.
Nifty Metal, Realty and the Auto sectors were the outperforming sectors with Tata Motors, Tata Consultancy Services, Coal India, Tata Steel and Kotak Mahindra Bank being the top gainers.
Nifty Auto closed the day 1.5 percent higher led by Tata Motors which spiked over 7 percent followed by Tata Motors DVR, Hero MotoCorp, Motherson Sumi Systems, Bharat Forge, Apollo Tyres, Edie Industries and TVS Motor Company.
Narnolia Financial Advisors recommends traders and investors to start their investments in the auto sector. The performance gap between Nifty and Nifty Auto has increased sharply. So, it is expected that Nifty Auto will converge towards Nifty very soon, said the report.
The research firm has a buy with target at Rs 274. The stock gave a price-volume breakout above Rs 200 and thereafter it is successively keeping above this level since last few trading days. There is no major supply area of the stock below Rs 274. So, the current demand is likely to lift the stock smoothly to higher level, the research firm added.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.