Maruti resumed its downtrend to retest the recent lows of 3200 or maybe further down to 2900.
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| Maruti Weekly |
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Original Post (March 8, 2016)
In our post dated January 2, 2016, we had predicted Maruti to touch Rs. 3550 when the stock was trading at Rs. 4000. Even earlier as far back as October 1, 2015 we had indicated a topping formation on Maruti at Rs. 4700.
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View post : http://eqtrend.blogspot.in/2016/01/how-maruti-topped-out-in-october-2015.html
The stock is presently trading below Rs 3500 levels and is extremely weak on the charts with no signs of revival.
In a deep correction stocks tend to correct till the low points of the first divergence. Maruti seems to have reached the corrective target and consolidate here for the next move.
However, the short term strength need to propel the stock above Rs. 3600 and the gaining momentum above Rs. 3900 for a long term change of trend.
If the weakness continues, and the stock is not able to surpass the first target of Rs. 3600, it may head for further lower levels of 2900.
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| Maruti Weekly |
