Maruti Suzuki soars over 4% on June 23! Here’s why

Shares of MARUTI zoomed over 4% on Thursday to become the top gainer amongst Nifty stocks. 

The stock of Maruti Suzuki India Ltd is displaying strong bullishness on the technical chart and is up about 8% from its recent swing low of Rs 7626. Interestingly, the stock has given a breakout from tis triangle pattern with good volumes. Moreover, the stock has found strong support in the form of its 200-DMA from where it has jumped multiple times. With such bullishness, the stock is above all its key moving averages and all the moving averages indicate bullishness. 

Moreover, the technical parameters also demonstrate positivity in the stock. The 14-period daily RSI (63.88) has entered the bullish zone. It has registered a breakout from its falling trendline, which is a bullish sign. Meanwhile, the MACD has given a bullish crossover. Analyzing the On Balance Volume (OBV), it has taken a sharp jump lately, indicating a spike in its volumetric strength. The Elder Impulse System has suggested a fresh buy while the TSI and KST also maintain a bullish view. Also, the Relative Strength (RS) has demonstrated an outperformance of this stock against the broader market. Moreover, the volumes have been good lately, indicating an active buying interest in the stock from the market participants. 

On YTD basis, the stock is up 10% and has outperformed its peers. The rally in Maruti arises from many factors such as the easing of crude oil prices and robust personal vehicle demand. Analysts predict that falling metal prices and improving supply chains shall benefit the profitability of the company. As per the price pattern of the stock, we can expect a target of Rs 8800 in the short to medium term. If market conditions are favourable, it can even test the Rs 9500 level. It provides several trading opportunities for short term, and traders can expect good gains in near term. Investors with a long-term view and trust in the quality of this stock can continue to buy on dips.