It was a strong 8 per cent surge for Maruti Suzuki last week The stock moved close to our near-term target at Rs 636 before tottering slightly.
This remains the trend-deciding level for the near-term. A downward reversal from here will pull the stock down to Rs 560 or Rs 586. Conversely, a break-out beyond Rs 636 will take the stock to Rs 673.
The resistance at Rs 636 is very important from a medium-term perspective too. Penetration of this resistance would pull the stock higher to Rs 750. As we have been reiterating, the area around Rs 550 is a reliable long-term support and the stock could be building a base around this zone.
Also Read: Maruti Suzuki Q3 net profit down 54%