Bullish Momentum Fuels Surge in Auto Stocks

On August 19, 2025, the Indian equity market is witnessing a surge in auto stocks, driven by strong bullish momentum across several industry leaders. Ashok Leyland, Maruti Suzuki, and Eicher Motors have all shown signs of technical strength, with their daily RSI, MACD, and ADX indicators pointing to a robust upward trend.

Ashok Leyland has recently broken above a key resistance level near ₹127, suggesting momentum continuation, while Maruti Suzuki and Eicher Motors have both reached new lifetime highs, reinforcing the bullish setup. Sectoral rotation has also played a significant role, with the Auto index surging 4.18%, the Realty index jumping 2.17%, and the Consumption index climbing 2.11%, signaling robust appetite for cyclical and consumption-driven plays.

The broader market sentiment has been further bolstered by softer-than-expected US inflation data, which has revived hopes of a September Fed rate cut, and cooling domestic retail inflation, which has reached an eight-year low of 1.55%. These twin positives have strengthened investor conviction, enabling the Nifty to sustain momentum above the 24,600 mark despite divergences across sectors.

The Nifty's technical structure has also improved, with the index showing signs of resilience after recent volatility. While the medium-term trend remains cautious, momentum indicators are turning more constructive, suggesting that downside pressure is fading. The index is now attempting to shift from consolidation to recovery, with the potential to test the 25,000 mark if it can sustain above the immediate support levels.