Despite ongoing volatility across broader markets, including significant swings in headline indices and smaller caps, the auto ancillary sector is emerging as a resilient investment opportunity. Vishnukant Upadhyay, AVP – Research & Advisory at Master Capital Services, has identified Samvardhana Motherson and Sona BLW as preferred plays for investors over the next six months.
Auto Ancillaries Show Strength in Choppy Markets
Upadhyay's positive outlook on auto component manufacturers comes at a time when many sectors are struggling with indecisive sentiment, subdued earnings, and macroeconomic concerns. He highlighted that this segment is demonstrating sufficient technical strength to warrant fresh accumulation, contrasting with the wider market's cautious tone.
Samvardhana Motherson: A Durable Chart Structure
Among his top recommendations, Samvardhana Motherson stands out due to its robust chart structure. Upadhyay noted the stock's ability to consistently hold above its 200-day exponential moving average (EMA) even during market turmoil. This technical resilience, often attractive to follow-through buying when sentiment improves, is further supported by a "flag and pole" pattern, typically a continuation signal for traders.
"The structure has been very constructive despite this turmoil in the market," Upadhyay stated, projecting upside targets for Samvardhana Motherson at Rs 170 and Rs 180 from its approximate Rs 157 level.
Sona BLW: Positioned for Outperformance
Sona BLW, another prominent auto components manufacturer, is also on Upadhyay's radar as an accumulation bet. He anticipates this stock can outperform in the coming months, suggesting investors consider accumulating shares at current levels.
"I’m expecting a Rs 900 to Rs 920 kind of level can be seen in Sona BLW," he added.
This reinforces the view that opportunities still exist within auto-linked manufacturing, even as the market remains highly selective. The broader automotive sector has shown signs of attracting renewed buying interest when overall risk appetite returns.
Key Takeaway for Investors
For investors navigating the current market, the crucial insight is the emphasis on relative strength. In an environment where many stocks are struggling to regain momentum, those that maintain positions above long-term averages and exhibit constructive technical patterns are likely to command premium attention. Samvardhana Motherson and Sona BLW currently appear to fit these criteria, offering potential opportunities amidst market uncertainty.