From April 2025 to date, the Nifty Auto Index has also seen significant volatility, in sync with the overall market trends and issue-specific issues. It had also seen a low of nearly 19,300 post the sustained rally beginning towards 24,000 in two months. Based on the current bullish chart pattern, Nifty Auto will remain above its 100 DMA from October 2025. We can expect significant
Hero Motors: Bullish reversal after a 40% fall
Hero Motors share price has reduced by 40% from its October 2024 peak and from a level of ₹6,250 to ₹3,340. However, recent price action shows a possible turnabout as the share has risen from these lower levels. This can signal fresh buying interest and the beginning of an uptrend.
Key signs indicating Hero Motors’s potential reversal
- Multiple bullish pattern Breakout: The stock has broken out from a “falling channel and Cup & handle” pattern, which signals the price to go upward.
- 100-Day Moving Average: After October 2024, the stock price will cross over its 100DMA again, indicating a possible trend reversal.
- Increased volume: The volume of the shares traded has increased as the price increases and can demonstrate a trend change.
- Increasing RSI Momentum: The Relative Strength Index (RSI) has exceeded 60, signalling strength and confirmation that the share may rise.
Outlook for Hero Motors
Hero Motors has remained an underperforming stock. The price corrected by 40% from October 2024 to April 2025 and fell from ₹6,250 to ₹3,340. Now, it has formed more than one bullish chart pattern on daily time frame, such as a falling channel and cup and handle. It has also moved above the 100-day moving average. Further, the 14-period RSI shows strength and is in a bullish zone, suggesting that Hero Motors can be moving up.
Tata Motors: Ready for a potential up move once again, after time and price correction
Having created a panic bottom, Tata Motors share price gained 38% from April 2025 to May 2025. The stock has been consolidating in a tight range and devoid of volume. However, a bullish chart pattern and signals on the daily chart signal that the trend can become bullish once again.
Key Technical Levels Favouring Tata Motors’s Reversal
- Falling channel Pattern: The stock is forming the “Falling Channel” pattern, which suggests a probability of an increase in the price.
- 100-Day Simple Moving Average: After the 54% price correction, the stock has found support, and prices are maintaining above its 100SMA, a classic indication of positive sentiment and a trend reversal.
- Volume Surge Confirming the Breakout: The simultaneous rise in price and volume earlier indicated robust participation, and the current lower volume in consolidation and minor fall of price instils faith.
- Boosting the RSI Trend: The 14-period RSI has moved above 50, indicating bullish divergence and a sustained upward momentum.
Prospects of Tata Motors
Tata Motors has remained an underperformer, returning -50% from July 2024 to July 2025 and falling from ₹1,180 levels to ₹535 levels. Now, it has created numerous bullish charts on the daily time frame, i.e., a falling channel and double bottom pattern. It has also gone above the 100-day moving average. Further, the 14-period RSI shows strength and is in a bullish zone, suggesting Tata Motor can go on the upswing in the near future.
Final Take
Before the RBI policy, the auto, real estate, and banking sectors remained in the limelight. Both Hero Motors and Tata Motors provide reasonable technical indications of the probability of a bullish trend in the real estate segment. These stocks offer bullish chart signals, rising strength in the RSI level, and showcasing key breakouts, all of which point to increasing strength and positive trends. The border market and sectoral recovery add strength and make the stock even more appealing.
Disclaimer
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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