Tech Query: What is the outlook for Maruti Suzuki stock?

Gurumurthy K |BL Research Bureau | Updated on: Feb 12, 2022

I have shares of Maruti Suzuki India. What is the outlook for the stock?

Ravichandran A

Maruti Suzuki India (₹8,740.6): On the charts, this stock is hovering at a crucial long-term resistance zone of ₹9,000-₹9,350. The stock has been struggling to breach ₹9,000 over the last three weeks. Important support is at ₹8,350. A break below it will see a sharp correction towards ₹7,500 in the coming weeks. A break below ₹7,500 will see the fall extending towards ₹6,300. You have not mentioned your buy price and the time frame for the outlook.

Assuming that you are a long-term investor, it is advisable to book profits for 30 per cent of your holding at current levels. Keep a stop-loss at ₹8,150 for another 20 per cent of the holding. Watch the price action near ₹7,500. If you see that the stock is not breaking below ₹7,500 then you can buy more around ₹7,500 levels. But if the stock falls below ₹7,500 then you must exit the balance 50 per cent. The stock will have to see a strong rise past ₹9,500 from here to avoid the above-mentioned fall.

I am holding Aurobindo Pharma since ₹790 levels. But the stock seems to be on a downtrend. Should I continue to hold or can I expect a bounce-back?

Latha Bajaj

Aurobindo Pharma (₹700.15): The trend is down since June last year. The stock made a high of ₹1,063 in May and has been coming down consistently since then. Resistance is now at ₹750 and the downtrend will remain intact as long as the stock trades below this hurdle.

The stock can fall to ₹535 from here initially. A break below ₹535 can drag it to ₹350 over the medium-term. Exit the stock with a loss at current levels. From a long-term perspective you can consider re-entering the stock at ₹400 and accumulate more at ₹360.

Published on February 12, 2022
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