By Kiran Jani
Since September 2024, the Nifty Auto Index reached an all-time high of 27,696 before undergoing a correction, hitting a low of 21,835 in January 2025—a decline of 18.20%. The Nifty 50 Index corrected 11.50% during the same period.
With the upcoming RBI policy announcement and the Federal Reserve’s decision, there is growing optimism that both central banks will implement interest rate cuts. Such a move would benefit the overall market, with the Auto and Realty sectors expected to gain the most.
Also ReadTwo defensive stocks set for Bullish Reversal
Given this backdrop, Eicher Motors and Tata Motors exhibit strong technical setups, making them attractive opportunities.
Source: Investing.com Types of technical setups
There are two main types of trading setups in the stock market:
- Continuation Pattern – Forms within a trend, indicating it will continue (e.g., a bullish pattern signals an uptrend).
- Reversal Pattern – Appears at the end of a trend, signalling a trend reversal (e.g., a bearish trend turning bullish).
1. Eicher Motors:
From June 2024 to December 2025, Eicher Motors remained in a consolidation phase, delivering a modest 7% return. However, technical indicators suggest a potential breakout:
- Ascending Triangle – A bullish continuation pattern indicating trend strength.
- Volume Surge – Increasing price and volume confirm a successful breakout, signalling further upside.
- RSI in Bullish Zone – The 14-period RSI is bullish, supporting upward momentum.
Source: Investing.com Outlook
Eicher Motors broke out from its consolidation/ascending triangle pattern in early January 2025, reaching a fresh high of ₹5,385. However, it failed to sustain the breakout and pulled back into the triangle. Now, the stock is gearing up again, nearing another breakout attempt.
If ₹5,000 holds as a support, the setup indicates a potential upside in the near term.
Tata Motors
Tata Motors had a strong rallyin early2024, delivering a45% gainbefore correcting from₹1,179in August 2024. Thedaily chartnow signals arenewed bullish trend, supported by:
- Bullish Harami Pattern – A reversal pattern has formed at the stock’s bottom.
- Falling Wedge Formation – The stock is on the verge of a breakout from this bullish setup.
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