Today’s pick is [stockquote]MARUTI[/stockquote]. The stock has been on an uptrend since Jan this year. It underwent a correction period between may to August, and then continued with the up-ward movement. It is currently trading near the 52-weeks high. In the last three months, the stock moved 28% against 4% as that of Nifty’s.
MACD line and signal line are running very close to each other.
The long-term GMMA lines are fanning out giving out a bullish signal, with a synchronized behavior of the short-term lines. A continued trend like this is extremely bullish for the stock.
The stock just saw a 4X9 bullish cross-over.
MARUTI has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility is currently in the lower end of the range and hence is not a concern.
Looking at these technicals a short-term buy is suggested. The GMMA lines are also suggesting a longer-term buy which could be confirmed after a decisive testing of the up-trend line in place.