Aetram Research India: NIFTY AUTO Weekly Sector Outlook
Nifty Auto Bears Retain Control Near Recent Lows; Below 24,500 Risks 24,000, While Above 25,300 May Encourage Recovery - 24.10.2026
Current Market Price: 24,862.30
Market Prediction:
- Nifty Auto shares are attempting to defend their previous trough after another unsuccessful recovery. The lower-high sequence remains intact. RSI at 45.13 suggests improving immediate momentum, although MACD stays negative. ADX at 28.39 indicates an established trend. Above 25,300 could allow 25,700; losing 24,500 may reopen 24,000 and extend sector weakness.
Upcoming Events:
- Stronger festive deliveries could improve confidence in automobile demand sustainability.
- Further steel and freight cost increases could pressure automakers’ margins.
- Vehicle price increases could weaken affordability and moderate subsequent bookings.
Major Support and Resistance:
- Support: 24,500, 24,000, 23,500
- Resistance: 25,300, 25,700, 26,050
Volume Analysis:
- Participation has remained relatively restrained during the latest retreat and rebound. No exceptional buying surge confirms accumulation near support. A recovery accompanied by expanding volume would carry greater conviction than the present tentative price response.
Final Take Away:
- The repeated return towards 24,500 highlights an increasingly important demand test. Stabilisation remains possible, but buyers must recover 25,300 before the rebound gains credibility. Below support, the descending structure would favour renewed downside price discovery.
Next Week Prediction:
- Watch whether 24,500 attracts sustained buying. Reclaiming 25,300 could extend relief towards 25,700; otherwise, renewed weakness may expose 24,000 during the coming week of trading.
Scenario-Based Outlook:
- Bullish Scenario: Above 25,300, price may move toward the 25,700–26,050 zone.
- Bearish Scenario: Below 24,500, downside risk toward the 24,000–23,500 zone.
- Neutral Scenario: Between 24,500–25,300, consolidation likely.
Disclaimer: This research report is for informational purposes only. This is not an offer to buy or sell securities. Past performance is not indicative of future results. There is no guarantee of returns. Investments in securities are subject to market risks including loss of capital. Investors should consult their financial advisor before making any investment decisions.
