Sunday, April 12, 2009

Maruti - Sell short term

Maruti Suzuki

Maruti Suzuki recorded an intra-week peak at Rs 829 and closed with marginal gains. The 14-day relative strength index has reached the overbought zone and negative divergence is apparent in the 10-day rate of change oscillator.

The implication is that the up-trend is losing momentum. There is a strong resistance in the band between Rs 830 and Rs 850 and caution is advised as long as the stock trades below this band. Short-term supports would be at Rs 760 and Rs 712.

We retain a positive medium-term view as long as the stock trades above Rs 750. The parabolic up-move witnessed since March could take the stock towards the medium-term target of Rs 850 and Rs 950.

Lokeshwarri S. K.
Businessline 12-04-09

Our View :

The decline in volumes indicates that the scrip is headed south for the time being.  Good support exists at Rs.750 where one can buy.   A clear sell above Rs.850 for the short term.

Bought to you by

Intelligent Investor
Investment Advisory division of

Ravina Consulting

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