Auto, auto ancillary stocks: Is it time to book profits? What Centrum's Nilesh Jain says
Jain’s response underscored a classic market principle: outsized gains in one sector can become a portfolio risk if left unmanaged.
- Aug 24, 2026,
- Updated Aug 24, 2026 4:02 PM IST
Investors sitting on hefty gains in auto and auto ancillary stocks may want to start locking in profits rather than letting sector concentration risk build unchecked. In a market where stock-specific action is dominating broader indices, technical analyst Nilesh Jain of Centrum Broking said portfolios loaded with multibagger auto names should be rebalanced selectively, even as momentum remains supportive in a few counters.
His core message was clear: do not abandon the rally, but do not ignore overexposure either. “It’s always advisable to keep booking profit,” he said, while outlining a strategy that balances wealth preservation with continued participation in the upmove.
Profit-booking, not panic-selling
Replying to a BTTV viewer query centred on a portfolio packed with auto and ancillary winners such as Mahindra & Mahindra Ltd, Samvardhana Motherson International Ltd, Sona Comstar and Ceat — all of which had delivered returns of three to four times, Jain’s response underscored a classic market principle: outsized gains in one sector can become a portfolio risk if left unmanaged.
He suggested two approaches. The first is to “book partial profit and ride this rally because the momentum still looks strong.” The second is more tactical — retain positions, but protect gains with trailing stop-losses across existing longs.
Sona Comstar, Motherson still in pole position
Among the names discussed, Jain identified Sona Comstar as one of the strongest charts in the pack. He said the stock “still looks strong on the chart” and could move towards the 860-880 zone in the near term, signalling that momentum traders may still find room on the upside.
Samvardhana Motherson also made the cut as a preferred hold. According to Jain, the stock has a “very strong chart pattern” and could head towards Rs 180-190 in the near term. For both stocks, he recommended a trailing stop-loss of 3-4 per cent, a strategy aimed at preserving gains while allowing investors to stay invested if the rally extends.
Ceat loses steam as sector leadership narrows
The sharper takeaway came on Ceat. Unlike the stronger ancillary plays, the tyre stock appears to be losing directional momentum. Jain said Ceat is “moving sideways,” adding that “ideally one can exit from the long position.”
That distinction matters. In a market where leadership within sectors is becoming increasingly selective, sideways price action after a sharp run-up can often indicate fading relative strength. For investors with oversized exposure to autos, trimming laggards first may be the most efficient way to rebalance.
Why this call matters now
The broader market backdrop adds weight to the advice. With benchmark indices under pressure and experts on the show flagging consolidation in the near term, concentrated bets in high-performing pockets may warrant closer scrutiny. The message for investors is not to rush for the exit, but to separate momentum leaders from stocks that may have already priced in the good news.
Investors sitting on hefty gains in auto and auto ancillary stocks may want to start locking in profits rather than letting sector concentration risk build unchecked. In a market where stock-specific action is dominating broader indices, technical analyst Nilesh Jain of Centrum Broking said portfolios loaded with multibagger auto names should be rebalanced selectively, even as momentum remains supportive in a few counters.
His core message was clear: do not abandon the rally, but do not ignore overexposure either. “It’s always advisable to keep booking profit,” he said, while outlining a strategy that balances wealth preservation with continued participation in the upmove.
Profit-booking, not panic-selling
Replying to a BTTV viewer query centred on a portfolio packed with auto and ancillary winners such as Mahindra & Mahindra Ltd, Samvardhana Motherson International Ltd, Sona Comstar and Ceat — all of which had delivered returns of three to four times, Jain’s response underscored a classic market principle: outsized gains in one sector can become a portfolio risk if left unmanaged.
He suggested two approaches. The first is to “book partial profit and ride this rally because the momentum still looks strong.” The second is more tactical — retain positions, but protect gains with trailing stop-losses across existing longs.
Sona Comstar, Motherson still in pole position
Among the names discussed, Jain identified Sona Comstar as one of the strongest charts in the pack. He said the stock “still looks strong on the chart” and could move towards the 860-880 zone in the near term, signalling that momentum traders may still find room on the upside.
Samvardhana Motherson also made the cut as a preferred hold. According to Jain, the stock has a “very strong chart pattern” and could head towards Rs 180-190 in the near term. For both stocks, he recommended a trailing stop-loss of 3-4 per cent, a strategy aimed at preserving gains while allowing investors to stay invested if the rally extends.
Ceat loses steam as sector leadership narrows
The sharper takeaway came on Ceat. Unlike the stronger ancillary plays, the tyre stock appears to be losing directional momentum. Jain said Ceat is “moving sideways,” adding that “ideally one can exit from the long position.”
That distinction matters. In a market where leadership within sectors is becoming increasingly selective, sideways price action after a sharp run-up can often indicate fading relative strength. For investors with oversized exposure to autos, trimming laggards first may be the most efficient way to rebalance.
Why this call matters now
The broader market backdrop adds weight to the advice. With benchmark indices under pressure and experts on the show flagging consolidation in the near term, concentrated bets in high-performing pockets may warrant closer scrutiny. The message for investors is not to rush for the exit, but to separate momentum leaders from stocks that may have already priced in the good news.