In Current price range Maruti is in highly inflated mode,heavy distribution has already taken place,the Upside is limited and down side is huge,Start exiting this counter gradually,The way I see it after dewali the stock will start to correct and can touch even 1050 levels.
MURTY .
I DIAGREE WITH THE VIEW U SHARED ON MARUTI .Y es i do agree that share is in over bought category but i has strong support of 1450 and 1350 . the chrts show the macd crossover has occred below 0.Its ahealthy sign.delivery volume are are 41% above average 37% of last 10 days.Total volume is double from last 10 days.16 LAKH SHARES INSTED OF 7 LAKH SHARES.
IT MAY NOT CLOSE THE SEPT SERIES BELOW CURRENT VALUE .I expect the shre to go to 2000 by dec.and 1800 in oct
please take your call
regards
dhakak
If you read my mesg the call I have given is `to start exiting this counter gradually`
My concerns are as under:
1)The food price Index is currently at 15.8% and it could touch 18-20% in the Oct end,and then the Govt would be forced to tighten monetary policy by increasing Interest rate and AUTO Sector is very sensitive to any Interest rate hike.
2)Maruti has gone Rural last year in Big way,and this year rural sale could get affected by Draught and the various SEZ has been shelved.
3)Cash for Clunkers programme in US was greatly responsible for the increase in Export sales for Maruti in recent times,but now that will take a HIT.
4)In recent austerity drive Govt has frozen any new purchase of New Car,and all the Car purchase has to be cleared by PMO,so thats the bad news for the company.
Yes you are correct that it can touch 1800 by OCT but it will touch 1050 before reaching 2000 is my feeling.
I may be wrong also,Pls take decision accordingly.
Your caution is well taken point three was information for me and thanks.
1 I don’t think till Dec-march there is going to be any change in monetary policy.
2 Hero Honda is likely to be more affected than Maruti and secondly rain fall deficits have not been as bad as thought initially and have been factored in.
Maruti has been allotted land in Haryana and will come out with R&d this fiscal, Maruti India plan of indigenously developing pure Indian vehicle is in full throttle and they will be self sufficient by 2012in in producing the fully Indian vehicle. They will be less dependent on parent suzuki for critical support.
The charts are maruti are the best. From 1050 levels people are feeling that its in the overbought category and its now 1635.
Open interest for the month of Oct has risen by 13% along with price rise of 80 its a bullish sign .MACD CROSS OVER IS BELOW ZERO
The stock is in very bullish sector which is in demand. It’s highly resilient it recovers very fast. Its charts are the best. And I feel its must in every portfolio.
Regards
dhakak
I feel the same that it is must be in everyone`s portfolio... But not @ the P/E of 35+... and money is flowing out of this scrip right from 1400 levels...
I feel it is over valued as of now... One can book profit than holding the profits in Paper... Sure to come down in the following sessions.
Short term investors and traders can play around these scrips with proper SL
Gunamil,
thx a lot several times i have booked profit and several times i have reentered.Always the fear is there that paper profit would vanishbut one thing that makes me stick to it is that the way it rises from its low levels we have seen it to come from 1105 to 1450, then fall to 1250 then agian rise to 1450. then rise to 1565 then fall to 1450.then again rise to 1665this time .
the steps are massive and recovery period is very short its all in memory.
what do u say .The PES WILL ALL CHANGE AND SECTOR WILL BE RERATED.ITs in nifty and imagine if nifty has to go to 1800-2000 then where its likely to be .
i stated what i felt but you can be more objective with one line paperprofit
regrads
dhakak
Yes i do agree that the recovery is sharp in this counter. My take is Maruti is definetely overvalued as of now... Large Cap with P/E of 35+ makes unconformtable most of the times for the fundamental and long term investors. It`s better to buy in dips or during correction...
| NIFTY 
