Aetram Research India: NIFTY AUTO Weekly Sector Outlook
Nifty Auto Recovery Stalls Below 25,800; Strength Above 25,800 May Extend Gains, While 25,200 Weakness Could Renew Selling - 31.10.2026
Current Market Price: 25422.70
Market Prediction
- Nifty Auto is attempting recovery from the 24,500 support base, but price remains below major long-term averages. RSI is neutral, CCI is mildly positive, while MACD momentum is improving. Sustained strength above 25,800 may lift the index toward 26,000–26,500, whereas weakness below 25,200 could revive selling pressure again sharply.
Upcoming Events
- October vehicle sales releases may support sector sentiment – Positive Catalyst
- Festive demand continuation may strengthen automaker revenue expectations – Positive Catalyst
- Higher input costs could pressure automobile margins further – Negative Catalyst
Major Support and Resistance
- Support: 25200, 24900, 24500
- Resistance: 25800, 26000, 26500
Volume Analysis
- Volume improved during recent rebound attempts, but participation remains moderate compared with earlier selling phases. Stronger buying interest above 25,800 may support continuation, while rising sell-side volume below 25,200 could weaken the recovery structure further.
Final Take Away
- Nifty Auto shows recovery efforts, but broader structure remains cautious below major averages. Holding 25,200 preserves near-term stability, while sustained strength above 25,800 may improve momentum toward 26,000–26,500; losing support could reopen 24,500 area.
Next Week Prediction
- Next week, Nifty Auto may remain range-bound with recovery attempts above 25,200; sustained strength beyond 25,800 could extend gains toward the 26,000–26,500 resistance zone.
Scenario-Based Outlook
- Bullish Scenario: Above 25800, price may move toward 26000–26500 zone
- Bearish Scenario: Below 25200, downside risk toward 24900–24500 zone
- Neutral Scenario: Between 25200–25800, 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.
