Maruti stock has built a solid bullish base at 3400 for future bullish move
As you can see in the chart above: Maruti stock was one of the best performing Nifty stocks in CY2015. It did all the right things - first consolidated just above 3400 and then took off sharply from 3400 to 4700 = 38% upmove by August 2015. All this in a year when Nifty did nothing great. Maruti stock then consolidated near highs of 4700 for long time before finally market correction took over pretty sharply in Jan 2016. Maruti stock sold off sharply from 4700 all the way down to 3400 by Feb end. It gave up all the good work of 2015
Despite many nervous moments - strong Yen and Global chaos - Maruti stock never threatened to breakdown 3400 decisively. The good news: stock has maintained its support of 3400 and this will result in buyers returning to the stock with greater confidence. The 3400 is now the Line of SUPPORT for Maruti stock
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers