The outlook for Maruti Suzuki India is positive. If the current bullish trend sustains, the stock could reach ₹11,400. The stock finds immediate support at ₹9,112 and a close below this level will drag the stock towards ₹8,500. Only a close below ₹8,070 will change the positive outlook on the stock. We expect Maruti Suzuki to move in a narrow range, with negative bias, before taking a clear direction.
F&O pointers: Maruti Suzuki futures witnessed a healthy rollover of 22 per cent to next month series. January futures closed with a premium of ₹78, signalling most of the rollovers were on the positive side. Option trading indicates a range of ₹9,500-10,000 for Maruti Suzuki.
While the maximum loss would be the premium paid (₹9,401), profit potentials are high. The position could yield a strong result if the stock price of Maruti rises or stays at current levels till the expiry of December contracts and falls sharply in January. Hold the position till the third week of January.
Follow-up: Hold Bank of India futures positions as recommended with the stop-loss.