, part of the auto sector, recorded a range breakout on 24 January when it declared results for the quarter ended December 2022. Suzuki’s net profit for the December quarter more than doubled on year to Rs 2,351 crore, and beat ET Now Poll of Rs 1,873 crore. Also Read
The stock which is part of the S&P BSE Sensex broke above a 250-point range from December 2022. The stock faced resistance around Rs 8,527 while on the downside support was seen at Rs 8,263.
A long bullish candle on the daily scale has opened room for the stock to now breach Rs 9,000 levels in the next 3-4 weeks, suggest experts.
The breakout was accompanied with strong volumes, and on the weekly scale as well, the stock formed a strong bullish candle which is a positive sign.
The stock rose more than 3% in a week and over 7% in a month.
In terms of price action, the stock is trading above 5,10,30, and 50-DMA. It is trading below the 100-DMA but above Rs 200-DMA on the daily charts.
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The Relative Strength Index (RSI) is at 64.9. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
“Maruti Suzuki stock has formed a strong base near Rs 8,500 zones and gave consolidation breakout on weekly scale. It has given Box breakout pattern on daily scale and forming higher highs – higher lows from past 3 sessions which indicates supports are gradually shifting higher,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“On a weekly scale too it has formed a strong bullish candle with noticeable volumes and managed to close above its 200 DEMA. RSI is also moving northwards which implies momentum is likely to continue going ahead,” he said.
Overall good resilience is seen in auto stocks in spite of market volatility and looking at the overall chart structure on daily and weekly scale we expect the stock to move higher.
“We recommend buying the stock at current levels while keeping stop loss below Rs 8,500 levels on a closing basis for an upside move towards Rs 9,200 zones,” recommends Beriwal.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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