The market has been in a corrective phase for the seventh consecutive month, with many stocks taking a significant dip of 20-40%. After a period of stellar returns between 2020 and 2024, investor expectations were sky-high, but the recent downturn has led to many losing interest in the markets. While these dips have been challenging, they also present an incredible opportunity for long-term investors. Stocks trending positively over the long term and have recently fallen into key demand or support zones are worth keeping an eye on.
Rather than retreating in uncertainty, now is the time to focus on accumulating shares in these solid companies that have weathered previous storms and show strong growth potential. Let us dive into three promising auto stocks that are currently presenting potential buying opportunities.
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Tata Motors has long been a household name in the Indian automotive industry, and its stock has undergone impressive growth over the past few years. From a low of Rs 65 in 2020 to a high of Rs 1,179 in 2024, the stock experienced a remarkable rally, reflecting the company’s strong performance and investor confidence.
However, following this robust uptrend, the stock has retraced by 50%, dipping to Rs 606, corresponding to a key Fibonacci retracement level, indicating a strong support zone.
Interestingly, the high point of 2015-2016 at Rs 600 witnessed a correction to Rs 65 in 2020. The breakout from Rs 600 in the reversal has been retested, offering a potential opportunity for investors looking for a discounted entry point into a fundamentally strong company. Furthermore, the stock has now entered the 50-MEMA Moving Average Channel’s support zone, confirming that this could be a solid demand zone.
For investors with a long-term view, Tata Motors presents a great chance to enter at a discount, especially given its track record and growth potential in both the domestic and international markets.
2. Hero MotoCorp Ltd (HeroMoto)
Hero MotoCorp, a leader in the Indian two-wheeler market, has recently seen a breakout after a seven-year consolidation period.
In 2024, the stock broke out from a significant resistance zone at Rs 4,000 and surged to Rs 6,246,
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