Vehicle scrappage policy, Ola e-scooter: How to trade key auto stocks now?

It was a busy weekend for the auto sector with the government notifying vehicle scrappage policy and Ola launching an e-scooter. Here's how you should trade auto stocks in this backdrop

Maruti Suzuki India (MARUTI)
Outlook: Mild weakness. Trades near support levels

The shares of Maruti Suzuki India are trading below both the major moving averages i.e 200-days moving average (DMA) and 200-weekly moving average (WMA) placed at Rs 7,215 and Rs 7,293 levels, respectively. This breakdown shows a negative bias that may lead to a bearish sentiment in the days ahead, if crucial support of Rs 6,758 is broken, which is its 100-WMA. The immediate support comes in at Rs 6,900 and then Rs 6,850 levels. The current stock movement indicates mild weakness, as per the daily chart.