Maruti Share price near 6000 – what to expect in the future?
Published: 9th July 2019
Maruti – Daily Chart:
With this close below a major support is indicator of weakness in the stock. As you can see from the chart image above, the break down is break from triangle formation on daily chart.
Normally a breakout is a good place to go long in such formation. In current situation opposite has happened, which means underlying strong weakness in the stock.
Now that Maruti share price has closed below this important support level, all bets are off. The chart shows that now Maruti is short candidate, on every rise.
The next support of Maruti is at 4800
New related to Maruti
- Livemint has reported on 7th July, that they have reduced production of their total vehicle production, including Super Carry LCV, to 1,11,917 units. This number is 15.6% lower than same month time last year in 2018.
- Same news reports state that:Automakers like Mahindra & Mahindra (M&M) and Tata Motors have also announced adjusting production to tapering market demand to cut down inventories.In May, overall passenger vehicle wholesales in India witnessed the steepest decline in nearly 18 years, dropping by over 20 per cent amid continued weakness in retail off-take.
This decision by the company, along with overall slowness in demands show that the outlook is bleak for some time. With new launches by Hyundai, Renault and others, the competition is only going to increase.
Thus, technically on chart as well as current public information on Maruti shows that the share prices of the company will be under pressure for some time.