Trade Idea of The Day - Maruti Suzuki India Ltd Target Rs. 60 - Religare Broking Ltd
Maruti Suzuki India Ltd
BUY 26 MAY 13100 PUT SELL 26 MAY 12800 PUT Entry Range 100-110 Target Range 60 Stop Loss 240
Rationale
• On the daily chart MARUTI continued to trade under pressure with a lower lows lower highs structure, which reflects a sustained bearish undertone. The stock prices are traded below the key moving average of the 20-DEMA and 50- DEMA, indicating weakness in the broader trend.
• On the technical front, the 13100–13200 zone is likely to act as an immediate resistance area, and any pullback towards this range may attract fresh selling pressure.
• Momentum indicators also remain weak, as RSI is hovering below the 45 mark while MACD continues to trade with a negative crossover, suggesting lack of buying strength at current levels.
• For the near term, its advisable to maintain a sell-on-rallies approach with immediate downside support at 12800 mark. So that one can initiate bear put spread for the recent bearish formation.
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