Maruti stock is in strong uptrend since 2009 market crash (2008). Hence looks like this already topped or near to top or move into a consolidation range from long term prospective. Here we will only deal with it's short term possibilities as we are here for trading and not for investment purpose.
As always we will look into it's bullish and bearish possibilities.
Bullish Scenario:
In daily time frame, Maruti had a recent correction some times around mid Nov from it's all time high of 4790 and currently trading at 3731, ie almost 1000 points down from it's top and all oscillators (RSI, Stochastic) are indicating highly oversold for this stock. Zooming on it's last 2 months chart we find that 3800 is a solid resistance from where it fall couple of time making this resistance a significant one. Now in coming week if this stock able to float above this resistance level then can move quickly to 4443 approx due to inverse H&S effect.
Bearish Scenario:
No stock can move in straight line. It eventually falls. Maruti had a long run from 2009 and it's very difficult to interpret at this level whether this stock had topped or not. As a short term trader it's not our job as well. We will trade this with strict stoploss. It stoploss hit we will exit or reverse as per the situation. Trading any failed pattern is also yummy. If Maruti fails to hold 3800 reverse your position and trade the negative side with target much below the HEAD of the inverse H&S pattern. But above 3800 it's always a buy.
Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!
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