GOLDEN RULES FOR TRADING

Auto Stocks Outlook for the week – 29.08.2016 to 02.09.2016 (Seen range bound with overall positive bias)

Auto Stocks Outlook for the week – 29.08.2016 to 02.09.2016
(Seen range bound with overall positive bias)

Stocks of major mobile companies are seen trading in a range next week with an overall
positive bias for the near term, aided by expectations of a healthy post-monsoon
demand and Payout of arrears based on the recommendations of the Seventh Pay
Commission is also seen lifting demand.

The CNX Index, which closed 0.7% higher at 9538.40 points yesterday, may remain
range bound in the next few sessions, finding resistance at 9800.00 levels and Support
for the index is seen at 9350.00 levels.

Last month, the government had approved recommendations of the Seventh Central
Pay Commission with retrospective effect from Jan 1, 2016. According to a report by
India Ratings and Research, the government will have to fork out in excess of 340 bln
rupees on account of arrears for January to July and salary payments for August.

Stocks of Maruti Suzuki are seen consolidating next week, backed by strong
fundamentals and a good order book for its Baleno hatchback and Vitara Brezza sports
utility vehicles. Besides, stocks of most two-wheeler makers are seen consolidating
with a upward bias, mainly due to expectations of an increase in the rural demand and a
turnaround in sales.