Today, we have seen a sharp upside move in Maruti and gained more than 5% in an intraday trading session. Recently Maruti made a low of 6821 in Friday’s trading session which now act as crucial support.
Look at the chart, stock Maruti is forming a Head and Shoulder pattern and showing strong neckline resistance at 7400.
Head and Shoulder formation from 7400 to bottom out levels is of 1000 points.
Decisive break and close above the resistance level of 7400 will take Maruti to 8000—8400 levels in days ahead.
Or else it could test its support level of 7050—6800 again but chances are unlikely to breach its support level of 6800 in near terms unless and until any major negative news comes from the global market.
Our positive view turns negate below 6800 levels. So trendy traders can trade as per levels given above.
Recommendation: Traders can buy Maruti above 7400 and add more lot in panic with stop loss below 6800 for the upside target of 8400.