Maruti Suzuki India Limited (MSIL) is the leading car manufacturer of passenger vehicle segment in India and one of the largest automobile seller with 41.30% market share as of November 2022. The principal activities of the Company are manufacturing, purchase and sale of motor vehicles, components and spare parts. The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing. The Company has two state-of-the-art manufacturing facilities, located in Gurugram and Manesar in Haryana, capable of producing 2.25 million units per annum.
|Time Horizon||2-4 Weeks|
The share price of Maruti has generated a breakout above a falling supply line joining highs since last two months with strong volumes of more than 2 times the 20 days average volume signaling larger participation at the breakout area and offers fresh entry opportunity.
In the smaller time frame it is approaching a breakout above last three weeks range (8200-8500). Buying demand is seen emerging from elevated support area of 20 days EMA (currently placed at | 8375) suggest positive price structure and inherent strength in the stock.
We expect the stock to maintain positive bias and it can touch 8800-9000 level in the coming weeks The daily MACD has generated a buy signal moving above its nine periods average thus supports positive bias, so one can initiate a buy position with a stop loss of 8200 and respected target seems up to 8800-9200.Time frame should be 2-4 weeks.