Chart Check: Maruti Suzuki likely to reclaim Rs 10,000-tag; may hit fresh record highs in next few weeks

Short-term traders can look to buy the stock now or on marginal dips for a target of Rs 10,600 in the next 3-4 weeks.

The stock gave a breakout from a swing high of Rs 9,800 earlier in July 223 to hit a fresh record high of Rs 10,036 on 5th July 2023, but investors preferred to book profits post the breakout which pushed the stock below Rs 9,900 level.

The stock retested Rs 9,800 once in June 2023 and then again on 3rd July. It took support above the 50-DMA on the daily charts before bouncing back. The stock rose more than 3% in a week and over 16% in the last 3 months.

The auto stock which is also part of the S&P BSE Sensex hit the Rs 10,000 mark back on 20th December 2017, but it failed to retain the momentum.

The recent climb towards record highs was accompanied by strong volumes, new launches from Maruti as well as momentum seen in the auto space. There is a higher likelihood that the stock will be able to regain momentum.

In terms of price action, the stock is trading above most of the crucial short- and long-term moving averages of 5,10,30,50,100, and 200-DMA on the daily charts.

“Maruti Suzuki stock price is in an overall uptrend and is forming higher highs – higher lows on a monthly scale from the past four months and trading at lifetime highs,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“On the weekly scale, it has given consolidation breakout after four weeks and formed a strong bullish candle,” he said.

“On the daily scale, it has given a new range breakout above Rs 9,800 zone with the highest daily close. Strong momentum is seen in Auto space, and the momentum indicator (RSI) has retested and is starting to move northwards,” he said.

Thus, looking at the overall chart structure, the stock is all set to scale new lifetime highs in coming sessions. “We recommend traders to buy the stock with stop loss below Rs 9,700 level on a closing basis for an upside target towards Rs 10,600 zone in the next 3-4 weeks,” recommends Beriwal.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)