Analysis: MARUTI

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.


Oscillators RSI and CMO are at currently at 66 and 17 are close to the over-bought territory. But, looking at the history of the stock, they still have some buffer to reach the over-bought side.  

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’s average correlation of 0.48 with the Nifty is positive. The stock will not be able to replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]


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.


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