Maruti Suzuki India Limited (MARUTI) Stock - Complete Technical Analysis - Oct 22, 2024

Maruti Suzuki Stock Analysis: Bearish Patterns, Key Levels & Trade Strategy

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 (MARUTI) is facing increased bearish pressure as evidenced by key technical patterns and indicators. The current price of 11,923 places it below crucial moving averages, with resistance levels around 12,400 and support near 11,800. The stock has recently formed bearish patterns like Bearish Engulfing and Evening Star, pointing to a continued downside.

Indicators such as MACD, RSI, and ADX are all pointing to bearish momentum. The MACD shows sustained negative levels, confirming weak price strength, while the RSI at 35 indicates the stock is nearing oversold territory. ADX suggests a lack of strong trend direction, and Stochastic readings show deeply oversold conditions, which could signal a short-term price reversal if buyers step in.

Volatility is rising, as seen through ATR, which suggests larger price movements could be expected. The Awesome Oscillator is negative, pointing to further weakness in the stock's trend. The stock's momentum is clearly in a downtrend, with short-term moving averages significantly lower than long-term moving averages, indicating sustained selling pressure.

Watch for potential support at 11,800. If this level breaks, the next downside could be swift. On the upside, resistance near 12,200 and 12,400 will be critical levels to monitor for any signs of reversal.