Nifty Auto Remains Bullish Despite Emerging Macro Risks: SEBI RA Sees Buy-On-Dip Opportunity

Nifty Auto Index remains one of the strongest performers this year, with its weekly chart structure continuing to favour higher levels, according to SEBI-registered analyst Rajneesh Sharma.

At the time of writing, the Nifty Auto Index was trading at 23,744.75, up 83.45 points or 0.35% on the day

He noted that the long-term downtrend break remains valid, and that the index is currently holding firmly above the key 23,000–23,300 support zone, describing it as a“textbook bullish retest.”

According to Sharma, the dominant bias remains toward higher levels, specifically in the 25,500–27,000 range over the coming months. 

However, he cautioned that a moderate pullback is increasingly possible, and suggested this should be viewed as a buy-on-dip opportunity, not a reason for concern.

On the macro front, Sharma highlighted a new supply chain risk emerging from China's export controls on rare earth magnets (REMs). 

He said Sona Comstar's application to import REMs was rejected, marking the first known case affecting an Indian auto component maker. 

He added that TVS Motor and Bajaj Auto are warning of potential production disruptions starting June–July, and noted that Suzuki Motor Japan has already suspended Swift production due to shortages.

He observed that Indian OEMs and component suppliers are scrambling to secure approvals, though delays persist. 

Sharma called this a real macro risk, which could lead to temporary sentiment-driven pullbacks in the sector.

As for trading strategy, Sharma outlined three key support zones. 

If the 23,000–23,300 zone holds, he expects the bullish trend to continue toward 25,500–27,000. 

If supply disruptions intensify, a pullback to 22,500–23,000 is likely, which he believes would present a high-probability buy-the-dip zone. 

He said even a deeper decline to 22,000 would not invalidate the bullish thesis but would instead offer a second accumulation opportunity.

On Stocktwits, retail sentiment was 'neutral' amid 'normal' message volume.

The index has risen 2.6% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN09062025007385015968ID1109650646