Maruti Suzuki continued to surge ahead; moving close to our first medium-term target at Rs 850. As explained in our last column, the stock is poised just above the upper boundary of its medium-term range that is at Rs 750. The medium-term view will remain positive as long as the stock holds above Rs 750. Subsequent targets are Rs 850 and Rs 950.
The short-term view for Maruti Suzuki is also positive. The movement since March 13 resembles a running correction that occurs when the sentiment is very strong. The uptrend is well established by the strong break-out beyond the 50 and 200-day moving averages. Traders can hold their longs with a stop at Rs 750. Next support is at Rs 715.
Short-term resistances will be at Rs 1,752 and Rs 1,813. Short-term support would be at Rs 1,575 and Rs 1,497.
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