Maruti Suzuki India Ltd. – Back-to-Back Breakouts…

Before this, we have identified two scripts of breakout and both have worked nicely. In addition, this is election month and if we look into history, India’s election period is positive sentiments for Automobile Sector.

Maruti Suzuki India Ltd. (NS: MARUTI) formerly known as Maruti Udyog Limited, is the biggest automobile manufacturer in India. It is a 56.21% owned subsidiary of the Japanese car and Motorcycle manufacturer Suzuki Motor Corporation. As of July 2018, it had a market share of 53% of the Indian passenger car market.

Technical Overview of MARUTI: I always prefer the daily time frame for analysis. In below candle chart, we can see the stock price has made Double Bottom around the level of 6480 (as on 28-29^th January 219 and 25-26^th March 2019). The actual rally started from 29^th March 2019 with good volume and stock price has given back-to-back Three Breakouts. We can see the first breakout on 1^st April (i.e. Lower Low), second on 3^rd April (i.e. Trendline 1) and the third one is on 9^th April (i.e. Trendline 2). On last Friday, the price has increased by 2.23% in a day and has given strong confirmation of the next rally. I am a bit late; however, I am expecting a big moment in MARUTI.



My view is that the overall automobile sector, sentiments, and technical chart are positive. Therefore, we shall long MARUTI from current market price i.e. 7342 or buy on dips till 7320-7300 for the target of 7500, 8000. Keep stop loss of 7120 on the closing basis.


 

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Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.