The stock has been in a downtrend so far in 2022. It fell more than 16 per cent from its 52-week high of Rs 9,022 to Rs 7,533 recorded on 17 May. The stock formed a Death Cross on charts on 16 May which suggests further selling pressure.
However, the stock seems to be showing signs of a rebound, and traders can look at going long on the stock above Rs 7,700 for a target of Rs 8,000-8,200, suggest experts.
The auto major with a market capitalisation of Rs 2.2 lakh cr bounced back after hitting a 52-week low of Rs 6,540 back in March 2022 but has remained volatile since then.
The stock is trading above 5, 10, 20, and 200-DMAs, but below 50 and 100-DMAs. The Relative Strength Index (RSI) is mid-range. RSI stood at 50.4. RSI below 30 is considered oversold, and above 70 is overbought.
RSI compares the magnitude of average gains and average losses of security for drawing inferences about its strength and weakness over a predetermined time period.
Read more about RSI here.
Stock Radar: Maruti Suzuki buy only above Rs 7700: Vaishali Parekh
Maruti Suzuki has made a decent correction from 8000 to 7000 levels and made a good recovery near 0.618% retracement levels, which is near 7100 level,” says Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher Pvt. Ltd.
“The stock has made a decent correction from Rs 8,000 to Rs 7,000 levels and made a good recovery near 0.618% retracement levels, which is near Rs 7,100 level,” Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher Pvt. Ltd, said.
“The Daily RSI indicator has reversed its trend to give a buy signal while the volume has been above average. Close above Rs 7,700 should lead the rally towards Rs 8,000 & Rs 8,200 levels,” she added.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)