Maruti Suzuki stock is in an uptrend on medium term chart. But stock is correcting on the daily chart and is now trading at support level. This support is provided by 61.8% fibonacci retracement level (High of 1639 and low of 1051), so 1275 is a strong support zone for the stock in short term.
We will be looking for buying opportunity in MARUTI around 1275 for a target of 1345, with stop loss being placed at 1245 level. This is not a intraday call, traders need to keep this position open for at least 8 to 10 trading sessions. Risk to reward ratio is comfortable above 1:2, so the trade is worth taking.
Article published on 27 March 13. Watch the below video for complete technical analysis info.