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Shares of Maruti Suzuki India Ltd, the country's largest automaker, fell as much as 1.9 per cent to Rs 8,237.25, their lowest since May 21, and chart suggests further downside.
The stock broke below a support at Rs 8,390.85, the 23.6 per cent Fibonacci retracement level of the uptrend from February 29, 2016 low to December 20, 2017 high. The stock's wave pattern suggests that it has completed a five-wave uptrend that started on February 29, 2016; it is now in the initial wave of a three-wave correction.
The stock broke below its 200-day exponential moving average(EMA) earlier this month, seen bearish for the stock. Breakdown of the 23.6 per cent retracement level suggests that the stock may now fall up to the next support at Rs 7,397.6, the 38.2 per cent level.
Trend Intensity indicator jumped to 23, suggesting that the prices are trending downwards; MACD is also negative and below its signal line. Maruti stock had fallen 8.23 per cent in the past month as of Tuesday's close, compared with the broader NSE Index's 1.67 per cent fall in the same period.
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