Buy Maruti Suzuki, target Rs 9800: Ashish Chaturmohta

Ashish Chaturmohta

Maruti Suzuki India is in an uptrend on the long-term weekly and monthly chart forming higher tops and higher bottoms. The stock hit a high of Rs 9,996 in the month of December last year and since then it has been in corrective phase to hit low of Rs 8,256.

The rally from this low has crossed falling resistance trend line connecting highs of Rs 9,996 and Rs 9,350. The price has also given a breakout from Bollinger band with the expansion of band and closed above upper band suggesting a trend to continue in the direction of the breakout.

The daily MACD has moved above the neutral level of zero and on the weekly chart, it has turned up after taking support at zero level. Thus, suggesting price correction is over and the uptrend is resuming.

The stock can be bought at the current level and on dips to Rs 8,920 with a stop loss below Rs 8,750 for a target of Rs 9,800 levels.

Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.