Top three auto stocks to buy today, 25 June, as recommended by Ankush Bajaj

The Indian stock market started the day on a positive note on Tuesday, but the momentum was short-lived, and indices turned highly volatile through the session. The Nifty 50 ended the session 72.45 points lower, down 0.29%, to close at 25,044.35. The BSE Sensex also slipped 158.32 points or 0.19%, finishing at 82,055.11. Here are the top auto picks as recommended by Ankush Bajaj Why it’s recommended : Eicher Motors has broken out of a bull flag pattern on the daily chart — a continuation pattern that typically signals the resumption of an uptrend. The breakout has occurred with momentum, and the price action confirms higher highs and higher lows. On the hourly chart, the stock is holding well above its short-term moving averages, indicating underlying strength. The Relative Strength Index (RSI) on the daily chart is at 79.00, suggesting strong bullish momentum, though nearing overbought levels. Eicher Motors has broken out of a bull flag pattern on the daily chart — a continuation pattern that typically signals the resumption of an uptrend. The breakout has occurred with momentum, and the price action confirms higher highs and higher lows. On the hourly chart, the stock is holding well above its short-term moving averages, indicating underlying strength. The Relative Strength Index (RSI) on the daily chart is at 79.00, suggesting strong bullish momentum, though nearing overbought levels. Key metrics: Resistance level: ₹ 5,694 (short-term target), Support level: ₹ 5,590 (pattern invalidation level) Resistance level: 5,694 (short-term target), Support level: 5,590 (pattern invalidation level) Pattern: Bull flag breakout on the daily chart; channel continuation on the 1-hour chart. Bull flag breakout on the daily chart; channel continuation on the 1-hour chart. RSI: 79.00 on the daily chart, reflecting strong momentum, with slight caution due to the overbought zone 79.00 on the daily chart, reflecting strong momentum, with slight caution due to the overbought zone Technical analysis: The breakout from the bull flag pattern confirms continuation of the prior uptrend. The price is trading above all key moving averages, and the RSI supports the strength of the move. While the stock is approaching overbought territory, high RSI values in strong trends can persist. A move toward ₹ 5,694 appears likely if the stock holds above the flag breakout level. The breakout from the bull flag pattern confirms continuation of the prior uptrend. The price is trading above all key moving averages, and the RSI supports the strength of the move. While the stock is approaching overbought territory, high RSI values in strong trends can persist. A move toward 5,694 appears likely if the stock holds above the flag breakout level. Risk factors: A drop below ₹ 5,590 would invalidate the breakout structure and could trigger short-term profit booking. Additionally, volume has not significantly expanded on the breakout, which calls for monitoring. Overbought RSI may lead to short-term consolidation. A drop below 5,590 would invalidate the breakout structure and could trigger short-term profit booking. Additionally, volume has not significantly expanded on the breakout, which calls for monitoring. Overbought RSI may lead to short-term consolidation. Buy at : ₹ 5,629.00 5,629.00 Target price: ₹ 5,694 5,694 Stop loss: ₹ 5,590 Buy: TVS Motor Company Ltd. (TVSMOTOR) — Current Price: ₹ 2,837.10 Why it’s recommended : TVS Motors has broken out of a triangle consolidation on the daily chart — a bullish pattern indicating the continuation of the prevailing trend. The breakout has been supported by rising open interest and improving price structure on the 1-hour chart. The RSI on the daily chart is at 61.30, indicating positive momentum with room for further upside. TVS Motors has broken out of a triangle consolidation on the daily chart — a bullish pattern indicating the continuation of the prevailing trend. The breakout has been supported by rising open interest and improving price structure on the 1-hour chart. The RSI on the daily chart is at 61.30, indicating positive momentum with room for further upside. Key metrics: Resistance level: ₹ 2,880 (short-term target), Support level: ₹ 2,800 (pattern invalidation level) Resistance level: 2,880 (short-term target), Support level: 2,800 (pattern invalidation level) Pattern: Triangle breakout on the daily chart; bullish structure continuation on the 1-hour chart Triangle breakout on the daily chart; bullish structure continuation on the 1-hour chart RSI: 61.30 on daily chart, indicating healthy bullish momentum 61.30 on daily chart, indicating healthy bullish momentum Technical analysis: The triangle breakout confirms the resumption of the bullish trend after a consolidation near the highs. The stock is above all key moving averages and supported by strength in the auto sector. A sustained move above ₹ 2,850–2,860 range can propel it toward ₹ 2,880 and beyond. The triangle breakout confirms the resumption of the bullish trend after a consolidation near the highs. The stock is above all key moving averages and supported by strength in the auto sector. A sustained move above 2,850–2,860 range can propel it toward 2,880 and beyond. Risk factors: A close below ₹ 2,800 would negate the breakout and could result in range re-entry or selling pressure. Weak volume follow-through may also stall the move, especially if the market turns volatile. A close below 2,800 would negate the breakout and could result in range re-entry or selling pressure. Weak volume follow-through may also stall the move, especially if the market turns volatile. Buy at : ₹ 2,837.10 2,837.10 Target price : ₹ 2,880 2,880 Stop loss: ₹ 2,802 Buy: Mahindra & Mahindra Ltd. (M&M) — Current Price: ₹3,150.10 Why it’s recommended : M&M has broken out of a downward sloping channel on the daily chart — a classic reversal signal indicating a shift from correction to a fresh uptrend. The stock also formed a bullish double-bottom base near ₹ 2,960 before reversing. The RSI on the daily chart is at 53.00, suggesting a shift from weak to strengthening momentum. : M&M has broken out of a downward sloping channel on the daily chart — a classic reversal signal indicating a shift from correction to a fresh uptrend. The stock also formed a bullish double-bottom base near 2,960 before reversing. The RSI on the daily chart is at 53.00, suggesting a shift from weak to strengthening momentum. Key metrics: Resistance level: ₹ 3,200 (short-term target), Support level: ₹ 3,120 (pattern invalidation level) Resistance level: 3,200 (short-term target), Support level: 3,120 (pattern invalidation level) Pattern: Downward channel breakout on the daily chart; higher-low formation on 1-hour chart Downward channel breakout on the daily chart; higher-low formation on 1-hour chart RSI: 53.00 on daily chart, indicating early-stage bullish strength 53.00 on daily chart, indicating early-stage bullish strength Technical analysis: The breakout above the upper trendline of the falling channel indicates the end of the corrective phase. Price is now trading above short-term moving averages with MACD crossover supporting the buy signal. A move toward ₹ 3,200 appears likely, especially with potential short-covering adding to momentum. The breakout above the upper trendline of the falling channel indicates the end of the corrective phase. Price is now trading above short-term moving averages with MACD crossover supporting the buy signal. A move toward 3,200 appears likely, especially with potential short-covering adding to momentum. Risk factors: A drop below ₹ 3,120 would invalidate the breakout and suggest the stock is slipping back into the prior range. Broader market weakness could also impact the near-term move. RSI is neutral, but a failure to gain momentum quickly could delay the breakout’s impact. A drop below 3,120 would invalidate the breakout and suggest the stock is slipping back into the prior range. Broader market weakness could also impact the near-term move. RSI is neutral, but a failure to gain momentum quickly could delay the breakout’s impact. Buy at: ₹ 3,150.10 3,150.10 Target price: ₹ 3,200 3,200 Stop loss: ₹ 3,120 Market Wrap On Tuesday, 24 June, the Indian stock market started the day on a positive note, opening with a gap-up, hinting at early optimism. However, that momentum was short-lived as the market turned highly volatile through the session. Swings in both directions kept traders on edge, and despite intermittent recoveries, the indices closed near their opening levels, indicating lack of clear direction and cautious sentiment. The Nifty 50 ended the session 72.45 points lower, down 0.29%, to close at 25,044.35. The BSE Sensex also slipped 158.32 points or 0.19%, finishing at 82,055.11. The Bank Nifty, after showing early weakness, recovered slightly but still ended 402.55 points down or 0.72%, at 56,461.90. In sectoral performance, the PSU Bank index gained 1.46%, the Metal index rose 1.01%, and the Finance sector edged up 0.88%, showing resilience in select areas. On the downside, the PSE index fell 0.36%, and the Oil and Gas sector declined 0.17%, highlighting mixed sentiment across sectors. Among the top gainers, Jio Finance surged 2.61%, supported by strong institutional activity. Adani Ports climbed 2.56%, and Shriram Finance gained 2.18%, showing strength in stock-specific buying. On the losing side, ONGC dropped 2.97%, while Power Grid declined 1.48%, and Trent fell 1.02%, as investors opted to book profits after recent gains Nifty Technical Analysis Daily & Hourly The Nifty ended the day at 25,044.35, posting a modest gain of 72.45 points or 0.29%. Despite the upward close, the index encountered visible resistance near its 20-hour moving average (25056), failing to sustain above this short-term hurdle. The 40-hour EMA at 24989 is acting as immediate support on the intraday chart, while on the daily chart, the 20-day and 40-day EMAs at 24,872 and 24,637 respectively continue to underpin the broader bullish structure. Momentum indicators are showing signs of fatigue. The daily RSI slipped slightly to 56, and the hourly RSI is at 53, indicating a neutral bias. The MACD remains in positive territory, with the daily MACD at 137 and the hourly MACD at 57, but the lack of fresh momentum suggests the trend is losing steam, potentially entering a short-term consolidation or pullback phase. From a derivatives standpoint, the options data indicates a shift in sentiment. The total Call Open Interest (OI) has surged to 20.45 crore, significantly outpacing the Put OI of 15.86 crore. This results in a PE-CE OI difference of -4.60 crore and a Put-Call Ratio (PCR) of just 0.78 — both clear signs of a bearish undertone emerging in the options space. Furthermore, the change in OI reinforces this view, with Call OI rising by 3.76 crore while Put OI saw a steep decline of 50.14 lakh, deepening the bearish bias with a PE-CE OI change difference of -4.26 crore. The maximum Call OI is observed at the 26,000 strike, suggesting a ceiling for the index, while the highest change in Call OI occurred at the 25,200 strike — a level that could now act as a near-term resistance. On the Put side, the 25,000 strike still holds the maximum OI, but notable buildup at the 25,200 strike hints at indecision and potential realignment of support levels. Adding to the cautious outlook, India VIX declined by 2.88% to settle at 13.64, indicating lower volatility but also reflecting a sense of complacency even as bearish data mounts. In summary, while the Nifty remains above its key moving averages and still holds a broadly bullish daily structure, short-term indicators and options data are flashing early warning signs. Unless the index decisively clears the 25,200 level and sustains above the 20-hour moving average, the risk of a pullback toward the 20-DMA at 24,872 remains on the table. Traders should remain nimble, keeping an eye on the PCR and OI shifts for cues on directional conviction. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.