Indian markets were trading with weakness on Tuesday taking cues from their US peers which ended in the negative on Monday amid inflation related fears. While the BSE Sensex was down by almost 100 points around 1:10 pm today and was trading at 60,619.06, the broader market Nifty50 was trading lower by almost 20 points from last closing at 18,089.80. However, Nifty Auto index appeared to be a clear outlier and was the best performing index out of the 15 sectoral indices. 

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The 15-share index was trading up 300 points or 2.6 per cent around this time at 11,987.85. Twelve shares advanced and three declined around this time. Maruti Suzuki India Limited, Tata Motors and Bharat Forge were the biggest gainers on the intraday basis and were up 6.3 per cent, 3.7 per cent and 3.5 per cent respectively.  

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The losers were Ashok Leyland, Tube Investments of India Limited (TIINDIA) and Amara Raja Batteries Limited which declined by almost 3 per cent, 1.7 per cent and 0.9 per cent respectively. 

Technical Analyst Nilesh Jain is bullish on the sector and certain stocks that he said are expected to do well in short to positional term.  

Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said that the ship shortage issue to looks to be behind us now. The Nifty Auto Index has emerged out of a major hurdle of 11,800 and the current moment is likely to sustain, the AVP said.  

He sees the index to test levels between 12500 and 13,000 over the next 2-3 months. He recommended three stocks for decent returns over the next 2-3 weeks.  

Mahindra & Mahindra: Buy| LTP: Rs 952| Target: Rs 1000/1050| Stop Loss: Rs 910| Upside 10%   

Jain’s first pick was Mahindra & Mahindra Limited (M&M) He said that the stock has come out of a three-year consolidation phase and is now well poised for a further upside. This stock was trading positively on Tuesday and was 2.9 per cent up from the Monday closing price. Buying at cure=rent levels or decline is advised in this stock. He sees a support at Rs 910 which should be taken as a stop loss, the AVP said. The stock recently hit its 52-week high of Rs 971.15 and has corrected from there.   

Tata Motors DVR: Buy| LTP: Rs 293| Target: Rs 320| Stop Loss: Rs 270| Upside 9% 

This stock has been seeing a positive momentum and has undergone a symmetrical triangle breakout. It traded in a range over the last 5-6 trading sessions. The stock is all set to surpass its 52-week high of Rs 297.90 and test levels of Rs 320. The support is seen at Rs 270.  

The stock was trading positively on Tuesday around this time and was up 3.9 per cent.    

Motherson Sumi: Buy| LTP: Rs 251| Target: Rs 300| Stop Loss: Rs 230| Upside 20% 

Another stock recommended by him was from the auto ancillary segment. He picked Motherson Sumi Systems Limited. His view on this stock is 2 weeks. The stock is trading near its breakout level of 256, Jain said. He recommended buy on decline on this share. Motherson Sumi shares were up almost 7 per cent in the intraday trade today. 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)