Maruti Suzuki India Limited (MARUTI) Stock - Complete Technical Analysis - Oct 14, 2024

Maruti Suzuki Stock Analysis: Key Support, Resistance, & Trading Insights

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Maruti Suzuki India Limited (MARUTI) is currently trading at 12,537.85, reflecting a price that is 8.35% below its recent 52-week high of 13,680.0 achieved on August 1, 2024, and 28.76% above its 52-week low of 9,737.65 recorded on January 18, 2024. The stock's P/E ratio stands at 27.4, indicating a relatively high valuation compared to its earnings, while a book value of 2,671 and a dividend yield of 1.00% suggest a stable foundation for investors.

Examining the technical indicators, the Average Directional Index (ADX) is at 16.82, suggesting a weak trend strength, with the Relative Strength Index (RSI) at 46.91 indicating that the stock is currently in a neutral position, neither overbought nor oversold. The Stochastic Oscillator shows %K at 32.47, hinting at potential bullish momentum as it nears the oversold threshold. The MACD level of 69.46 indicates a bullish trend but could face resistance, given the nearby resistance levels.

In the short term, the stock has exhibited some volatility, with the last trading session opening at 12,775.00, reaching a high of 12,799.00, and closing lower at 12,537.85. This downward movement from the high signals a possible sudden price drop and suggests that traders should watch for further price action to determine market sentiment. The recent daily lows also demonstrate potential support at approximately 12,462.30, indicating a crucial level to monitor in the upcoming sessions.

Price trends show that MARUTI has experienced recent fluctuations, creating a noticeable gap from the previous closing. Given the current price behavior and the indicators, a cautious approach is recommended, focusing on the support level for entry opportunities and monitoring resistance for possible sell signals. The stock's volatility, reflected in the Average True Range (ATR), indicates potential for significant price swings, suggesting that traders remain alert for potential reversals or trend changes.

Overall, MARUTI's technical landscape suggests mixed signals; while there are indications of bullish potential, the current price action and market conditions necessitate close monitoring of support and resistance levels to optimize trading strategies.