MARUTI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | MARUTI | Market Cap | 4,46,342 Cr. | Current Price | 14,199 ₹ | High / Low | 17,372 ₹ |
| Stock P/E | 30.7 | Book Value | 3,098 ₹ | Dividend Yield | 0.95 % | ROCE | 21.7 % |
| ROE | 15.6 % | Face Value | 5.00 ₹ | DMA 50 | 15,918 ₹ | DMA 200 | 14,744 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.29 % | PAT Qtr | 3,794 Cr. | PAT Prev Qtr | 3,303 Cr. |
| RSI | 21.7 | MACD | -499 | Volume | 4,08,881 | Avg Vol 1Wk | 8,73,243 |
| Low price | 11,059 ₹ | High price | 17,372 ₹ | PEG Ratio | 0.43 | Debt to equity | 0.00 |
| 52w Index | 49.7 % | Qtr Profit Var | 3.68 % | EPS | 462 ₹ | Industry PE | 30.8 |
📊 Chart Patterns & Trend: Maruti is trading at 14,199 ₹, well below its 50 DMA (15,918 ₹) and 200 DMA (14,744 ₹). This indicates a bearish reversal with strong downward bias. The stock is closer to its 52-week low (11,059 ₹) than its high (17,372 ₹), reflecting weak sentiment.
📈 RSI: At 21.7, RSI is in deep oversold territory, suggesting potential for a short-term rebound but overall weak momentum.
📉 MACD: Strongly negative at -499, confirming bearish momentum and lack of bullish crossover signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (4,08,881) is significantly lower than average weekly volume (8,73,243), showing weak participation and lack of conviction in recent moves.
🎯 Entry Zone: 13,800–14,100 ₹ (near support and oversold RSI).
🎯 Exit Zone: 15,800–16,000 ₹ (near 50 DMA resistance).
Positive
- Market cap of 4,46,342 Cr. reflects strong industry leadership.
- Stock P/E of 30.7 is aligned with industry PE of 30.8, showing fair valuation.
- ROCE (21.7%) and ROE (15.6%) highlight strong capital efficiency.
- Debt-free balance sheet (Debt-to-equity ratio 0.00).
- Quarterly PAT improved to 3,794 Cr. from 3,303 Cr., showing sequential growth.
- DII holdings increased by 0.29%, indicating domestic institutional confidence.
- EPS at 462 ₹ supports long-term earnings visibility.
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak momentum.
- RSI and MACD both indicate strong bearish undertone.
- Volume participation is weak compared to average, reducing conviction in price action.
- Dividend yield is modest at 0.95%.
Company Negative News
- FII holdings decreased (-0.02%), showing reduced foreign investor confidence.
- Stock trading near oversold levels, reflecting weak sentiment.
Company Positive News
- Quarterly PAT growth of 3.68% indicates operational improvement.
- DII stake increase reflects domestic investor confidence.
- Debt-free balance sheet provides financial stability.
Industry
- Automobile sector trading at industry PE of 30.8, making Maruti fairly valued at P/E of 30.7.
- Sector outlook remains positive with rising demand for SUVs, EV adoption, and rural market expansion.
Conclusion
⚖️ Maruti is in a bearish reversal phase with oversold RSI and strongly negative MACD. Entry near 13,800–14,100 ₹ offers margin of safety, while exits around 15,800–16,000 ₹ provide profit-taking opportunities. Long-term investors may find value due to strong fundamentals, high ROE/ROCE, and debt-free status, while short-term traders should be cautious until reversal signals strengthen.
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