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We recommend a buy in Maruti Suzuki India at current market price. It is clearly evident for the charts of Maruti Suzuki India that it has been on a medium-term downtrend since its life high of Rs 1,252 touched in late October 2007. During this downtrend, the stock breached the 50-day and 200-day average line and continued to decline. However, on January 22, the stock found support at around Rs 700 level (which is a key historical support level) and bounced up almost 14 pe r cent from the intra-day low (indicating signs of bullishness). The daily momentum indicator is featuring in the oversold region, indicating buying opportunity at current levels. The immediate support for the stock is at Rs 700 and the next support is at Rs 600 levels. We believe that the downside is limited in this stock. Considering the intra-day bounce up and the momentum indicator featuring in the oversold region, we expect the stock to move up to the immediate resistance level of Rs 900 in the short-term. The short-term investors can buy the stock while keeping the stop-loss at Rs 750 level.

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