A Study on Performance of Technical Analysis of Automobile Sector Listed in NSE

Mr. Purushotham.V

 Student, Panimalar Engineering College, Chennai - 600123

Dr .M. Beulah Viji Christiana

 Assistant Professor, Department of Master of Business Administration, Panimalar Engineering College, Chennai – 600123

Abstract
This study focuses on analyzing the performance of selected automobile sector companies listed on the National Stock Exchange of India using various technical analysis tools. The main objective of the study is to evaluate stock price movements, identify trends, and provide insights that can help investors make better investment decisions. The study specifically considers five major automobile companies, namely Maruti Suzuki India Ltd, Ashok Leyland Ltd, Mahindra & Mahindra Ltd, Hero MotoCorp Ltd, and Bajaj Auto Ltd, which are well-known for their strong market presence and high trading activity.The research is based entirely on secondary data collected from reliable financial sources such as NSE, Yahoo Finance, TradingView, and Screener.in. The study covers a period of one year, from April 2025 to April 2026, to examine stock price behaviour under different market conditions. A quantitative and analytical research approach is adopted, using tools like volatility analysis, candlestick charts, moving averages, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Bollinger Bands, and trend analysis. These tools help in understanding price fluctuations, identifying bullish or bearish trends, and determining potential buy and sell signals.The findings of the study reveal that the automobile sector shows mixed performance with varying levels of risk and return. Bajaj Auto Ltd demonstrates strong bullish momentum with low volatility, making it suitable for risk-averse investors. Maruti Suzuki India Ltd shows signs of short-term recovery but remains weak in the long term. Hero MotoCorp Ltd reflects a sideways trend, indicating market indecision, while Mahindra & Mahindra Ltd shows a recovery trend with moderate volatility. In contrast, Ashok Leyland Ltd exhibits high volatility, indicating higher risk and speculative price movements.The study concludes that technical analysis is an effective method for evaluating stock performance and understanding market behaviour. However, it also highlights that relying solely on technical indicators may not provide complete accuracy, as stock prices are influenced by external factors such as economic conditions, government policies, and investor sentiment. Therefore, investors are advised to combine technical analysis with fundamental analysis and adopt proper risk management strategies. Overall, this study provides valuable insights into stock trends, volatility, and investment opportunities within the automobile sector, making it useful for both academic and practical purposes.