The Nifty Auto Index has finally broken out of its prolonged downtrend, signaling a potential revival in the auto sector. Among the stocks showing promising technical strength, JBM Auto stands out as an attractive candidate for medium to long-term traders and investors.

Technical Setup: A Compelling Chart Story

On the weekly chart, JBM Auto has demonstrated notable resilience and buying interest. A few weeks ago, the stock surged with strong volume, indicating accumulation and bullish momentum. Following this upward move, the stock has entered a pullback phase—a healthy retracement that often precedes the next leg up.

Key Levels to Watch

For traders looking to enter, the critical level to monitor is ₹715. A decisive breakout above this resistance could confirm the resumption of the uptrend, opening the door for potential targets at:

₹820 (Initial resistance), ₹900 (Intermediate target), ₹1,000+ (Long-term upside if momentum sustains)

RSI Indicates Growing Strength

The Relative Strength Index (RSI), a key momentum indicator, is gradually moving out of the neutral zone, reinforcing the bullish case. This upward shift suggests that buying pressure is building, increasing the likelihood of a sustained upward move.

Why JBM Auto?

Beyond the technicals, JBM Auto’s positioning in the auto ancillary space—with exposure to electric vehicles (EVs) and strong OEM relationships—adds a fundamental tailwind to the trade. As the auto sector recovers, ancillary players like JBM could see significant re-rating.

Trade Strategy

Entry: Wait for a confirmed breakout above ₹715 with strong volume.

Targets: Progressive upside towards ₹820–1,000+ in the medium to long term.

Stop Loss: A close below recent swing lows (~₹650) could invalidate the setup.

With the Nifty Auto Index turning favorable and JBM Auto’s chart structure looking robust, this could be an opportune time to watch this stock for a potential multi-month upmove. As always, risk management and disciplined position sizing remain key.