Maruti Suzuki is one stock which has been in a consistent down trend for the past few months. Even before the Jan 08 crash, the stock was already underperforming after making a high in Oct 07.
The current price area is a crucial support - especially on the weekly charts- and a break below 725 on close should lead to further selling in the stock as the weekly charts would become negative.
Weekly charts suggest that on a close below 725, a down move to Rs 585 is possible in next few weeks.
Only a close now above Rs 850 can make the investor safe in holding the stock.
Investors in this stock may take note !
Happy trading
CA Rajiv D Khatlawala
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