If someone has Auto Sector stocks in his portfolio, he should choose to exit.
One by one all the chips are falling.
First the Metal and Cap Goods sector collapsed. Then came Banking. And the latest crack in the ice is seen in the Auto sector. Once, super hot MnM famed for its SuVs is now seeing a double top on the weekly chart.
Once 800 breaks, it is all downhill from there. Surely, no one can save the auto, just like realty couldn't be saved.
Hero has clearly drawn the line for its top. It is worth a look only near 800, yes 50% lower. The reason being very clear. The sector is out of fashion. There is no sensible reason why money will flow into auto... sales are declining.
There is so much competition, with Maruti, MnM, Hyundai, Tata, Honda, Renault, Ford, fighting for the same pie. The competition will eat each other up!
Tata Motors has made its intentions very clear... It has made a
1. a double top
2. ascending triangle pattern
that too on the monthly charts, now that is a wow! Knowing the tendency of the auto sector to sharply correct by as much as 70%, it is best to stay away.
And the worst case is Ashok Leyland. It is share price seems to have gathered the determination to nose dive into oblivion...
There is not one reason to have Metals, Cap Goods, Auto, Realty stocks.
One by one all the chips are falling.
First the Metal and Cap Goods sector collapsed. Then came Banking. And the latest crack in the ice is seen in the Auto sector. Once, super hot MnM famed for its SuVs is now seeing a double top on the weekly chart.
Once 800 breaks, it is all downhill from there. Surely, no one can save the auto, just like realty couldn't be saved.
Hero has clearly drawn the line for its top. It is worth a look only near 800, yes 50% lower. The reason being very clear. The sector is out of fashion. There is no sensible reason why money will flow into auto... sales are declining.
There is so much competition, with Maruti, MnM, Hyundai, Tata, Honda, Renault, Ford, fighting for the same pie. The competition will eat each other up!
Tata Motors has made its intentions very clear... It has made a
1. a double top
2. ascending triangle pattern
that too on the monthly charts, now that is a wow! Knowing the tendency of the auto sector to sharply correct by as much as 70%, it is best to stay away.
And the worst case is Ashok Leyland. It is share price seems to have gathered the determination to nose dive into oblivion...
There is not one reason to have Metals, Cap Goods, Auto, Realty stocks.
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