Maruti Suzuki stock is in an uptrend on a medium-term chart. But the stock is correcting on the daily chart and is now trading at a support level. This support is provided by a 50% fibonacci retracement level (High of 9770 and low of 6570), so 8150 is a strong support zone for the stock in the short term.
We will be looking for buying opportunity in MARUTI around 8150 for a target of 8950, with stop loss being placed at 8000 level. This is not a intraday trading call, traders need to keep this position open for at least 8 to 10 trading sessions. Risk to reward ratio is comfortable at 1:8, so the trade is worth taking.
The article was published on 6 April 2023. Watch the below video for complete technical analysis info.