Maruti once was among the top performing stocks in
the Auto sector but post making a high near 9929 levels in July 2018, the stock
failed to sustain and witnessed a sharp fall failing to show any recovery.
An important support zone near 6300 levels was seen
but the same has been now broken decisively. Auto stocks have failed to show
any recovery and the rallies have been short lived.
Below is the chart with detailed analysis and the
move witnessed has been in sync with our counts.
Maruti
Daily Chart:
Maruti
witnessed a sharp fall from the high of 9929 levels till 6440. Prices traded
near the zone of 6300 – 6440 for many months but this is now given away over
past two days. The same zone which acted as support will now act as strong
resistance. So unless we see move back above 6440 levels the outlook for the
stock will remain bearish.
In the last
session prices finally managed to break below the support on closing basis and
since then has been moving lower and lower. Now as long as we do not see a
faster retracement of the fall the trend would remain negative.
This simply
shows how amazing simple horizontal support or resistance works and it can help
in capturing reversals just by using such simple techniques.
From wave
perspective, prices are currently moving in wave iii of (c) which might be
forming an Ending diagonal pattern. It will be only post completion of 5 waves
down we can see recovery in this stock. The stock has now corrected nearly 40%
from its life time high levels of 10000 and we will hint it in our daily
research once a faster retracement back above important resistance level is
seen.
We have been
publishing about this stock with detailed analysis in our daily equity research
report published under the name “The
Financial Waves STU”. Subscribe for the report and get daily updates of
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