Maruti Suzuki continued its upward march and achieved our first medium-term target of Rs 850 last week. Though a mild reaction was witnessed on Friday, the short-term trend in the stock continues to be up.
Short-term supports for the stock are Rs 810 and Rs 770. Short-term traders can hold their long positions until the stock trades above the first support. Medium-term investors can hold with a deeper stop at Rs 740.
Next medium-term target for Maruti Suzuki is Rs 950 that is 61.8 per cent retracement of the long-term down trend from the October 2007 peak. A close above this level would imply that the stock can head towards its life-time high peak once again.