Maruti Suzuki India Analysis

Maruti Suzuki India has rallied from 908  to 1777 odd levels in a 5 wave sequence. It is in a correct wave ABC forming a bear flag after a decline of wave (a) from 1777 - 1260 and wave (b) rise in a corrective pattern from 1260 - 1623. Now has started a wave (c) decline ash shown in Chart 1.

                                             Chart 1.    Maruti Suzuki India Daily Chart

A break below 1530 would intensify the selling in the counter, which confirms a break down of a bear flag. In near term 1575 - 1580 can act as a resistance, which is also a 0.236% retracement of the rally from 900 to 1777 odd levels as shown in Chart 2.

                                       Chart 2. Maruti Suzuki India Daily Finbonacci Chart

The entity has retraced each rally by 0.618 in an impulse and corrective wave pattern equally. Wave 2 has retraced 0.618 of wave 1, wave 4 has retrace wave 3 by 0.618 and wave A has retrace wave 5 by 0.618 as shown in the charts below Chart 3 and Chart 4. 

Chart 3. Maruti Suzuki India Daily Finbonacci Chart

                                         Chart 4. Maruti Suzuki India Daily Finbonacci Chart

Key support and resistance levels

Support - 1530 / 1500 / 1450 / 1400 / 1340

Resistance - 1575 / 1600 / 1638

So trade objectively and wisely with the consideration of own risk and volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.

Raju V Angadi

 Equity Research Analyst

 To know more about probable counts contact us back rvangadi@googlemail.com 

Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.