Archive · 12 Oct 2026
Oversold Metal and Auto Stocks May See Relief Rally
Many Indian stocks have been falling, and few are above their recent average prices.
Some investors are watching metal and car-company stocks because they may have fallen enough to bounce for a while.
The metal index is near a support level around 11,800.
If it rises, it may meet resistance around 12,300 to 12,400.
If it falls below support, lower levels could come into view.
The auto index is near support around 24,300.
If it stays above that level, it could rise toward 25,500 and 26,100.
These possible gains may be temporary, and the article says the signs do not yet prove that the wider market is recovering.
Only 22% of Nifty 50 constituents traded above their 10-day simple moving average; for Nifty Auto, the figure was zero.
Foreign institutional investors increased index-futures positions by 10.6% on Friday, and their long-short ratio rose to 9.6.
The Nifty Metal Index is testing support near 11,800 after breaking its rising trendline and falling 6% in September.
Metal stocks could rebound toward 12,300–12,400, but the article says a rally may be corrective unless that resistance is decisively reclaimed.
Nifty Auto is testing channel support near 24,300; a hold could allow a move toward 25,500 and then 26,100.
- Who
- Indian market investors, including foreign institutional investors; the analysis is by Anand James of Geojit Investments.
- What
- The article assesses whether oversold metal and auto stocks could see a short-term relief rally.
- When
- Published as a Monday watchlist; it also discusses Friday's market activity and recent September declines.
- Where
- Indian equity markets, including the Nifty 50, Nifty Metal Index, and Nifty Auto Index.
- Why
- Oversold readings and signs of easing selling pressure may support a short-term bounce, although the broader recovery is unconfirmed.
- Nifty 50 constituents above 10-day SMA
- 22%
- Nifty Auto constituents above 10-day SMA
- 0%
- FII index-futures position increase
- 10.6% on Friday
- FII long-short ratio
- 9.6, up from around 8 at the beginning of the month
- Nifty Metal support and possible resistance
- Support near 11,800; potential recovery zone at 12,300–12,400
- Nifty Auto support and upside levels
- Support near 24,300; resistance levels at 25,500 and 26,100
- Analysis author
- Anand James, Chief Market Strategist at Geojit Investments