MARUTI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.2

📈 Chart Patterns & Trend: MARUTI is trading at ₹16,398, above both its 50 DMA (₹15,916) and 200 DMA (₹14,289). This indicates a strong uptrend with bullish momentum, as the stock is near its 52-week high of ₹16,674.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support lies near ₹15,900 (50 DMA) and ₹14,300 (200 DMA), while resistance is around ₹16,650–₹16,700.

📉 RSI: At 56.4, RSI is in the bullish zone but not overbought, suggesting room for further upside.

📈 MACD: Positive MACD (125) signals strong bullish momentum, supporting continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹16,650. A breakout above this level could trigger fresh highs.

📊 Volume Trends: Current volume (2.21L) is in line with the weekly average (2.22L), showing steady participation. Sustained higher volume near resistance would confirm breakout strength.

🎯 Entry Zone: ₹15,900–₹16,100 (near support)

🚪 Exit Zone: ₹16,600–₹16,700 (near resistance/high)

Positive

• Strong ROCE (21.7%) and ROE (15.6%) reflect efficient capital utilization.
• Debt-free balance sheet ensures financial stability.
• PEG ratio of 0.50 highlights undervaluation relative to growth prospects.
• Stock trading above both 50 DMA and 200 DMA confirms bullish momentum.

Limitation

• High P/E (36.2) compared to industry PE (33.9) suggests premium valuation.
• Quarterly PAT dropped from ₹3,712 Cr. to ₹3,293 Cr., showing earnings volatility.
• DII holding decreased (-0.70%), indicating reduced domestic institutional confidence.

Company Negative News

• Recent profit decline raises concerns about margin sustainability.
• Reduced domestic institutional participation adds pressure on valuations.

Company Positive News

• FII holding increased (+0.58%), showing foreign investor confidence.
• Quarterly profits remain strong despite slight decline, with EPS at ₹453.
• Strong fundamentals with debt-free operations and efficient capital use.

Industry

• Industry PE at 33.9 is slightly lower than MARUTI’s PE (36.2), suggesting fair valuation.
• Automobile sector demand supported by SUV sales, rural demand, and infrastructure growth.

Conclusion

📌 MARUTI is in a strong uptrend, trading above key moving averages with positive MACD and supportive RSI. Entry near ₹15,900–₹16,100 offers favorable risk-reward, while resistance at ₹16,600–₹16,700 provides exit targets. Strong fundamentals and debt-free balance sheet support long-term bullish potential, though premium valuation and slight earnings decline warrant cautious optimism.