Buy M&M, Maruti Suzuki shares; stay cautious on Tata Motors stock, suggests YES Securities

Indian benchmark indices managed to extend gains for the second session but the trade remained range-bound throughout the day. The volatility over Q1 earnings and trade deals kept the gains dwarfed. BSE Sensex added 143.91 points, or 0.18 per cent, to settle at 81,481.86, while NSE's Nifty50 added 33.95 points, or 0.14 per cent, to close at 24,855.05 for the day.
 

Select buzzing auto stocks including Maruti Suzuki India, Tata Motors and Mahindra & Mahindra (M&M) are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Senior Technical Analyst at YES Securities has to say about these stocks ahead of Thursday's trading session:
 

Maruti Suzuki India | Buy | Target Price: Rs 13,400 | Stop Loss: Rs 12,200

Maruti share price has recently emerged from a period of consolidation, establishing a robust support base around its 20-week SMA. This renewed traction, evidenced by the stock surging above its short and medium-term moving averages, suggests a limited downside risk, making it an opportune moment for investors. Considering the current technical positioning and a favorable risk-reward ratio, we recommend accumulating Maruti shares in the Rs 12,580-12,620 range with a stop loss at Rs 12,200, targeting a potential upside to Rs 13,400 in the short to medium term.
 

Tata Motors | Caution | Resistance: Rs 710 | Support: Rs 640

Tata Motors has underperformed compared to the benchmark index and has been forming lower highs and lows indicating weakness. On the daily chart, the stock consistently faces resistance from its 50 SMA and formed a bearish belt hold pattern in yesterday's session. Given the price action and volume activity, a breakdown below 665 from its key support level is expected with downward momentum likely to resume.
 

Mahindra & Mahindra | Buy | Target Price: Rs 3,470 | Stop Loss: Rs 3,050

M&M experienced some minor profit booking after a recent peak of Rs 3,303, temporarily dipping below its ascending trendline. However, it found strong support around its previous swing low which also aligns with the 20-Day SMA. The stock has shown a reversal from the 38.2 per cent Fibonacci retracement of its previous upward move. These combined technical signals suggest a likely recovery in the coming weeks, making this an important level to watch for bullish momentum. Traders might consider initiating long positions in the Rs 3,180-3,200 zone with an upside target of Rs 3,470. A stop loss should be placed at Rs 3,050.