Tech view: Maruti could rally up to Rs 10,700 in the near-term

The share price of Maruti crossed Rs 10,000 mark for the first-time ever on Wednesday, after the company launched Invicto - its first car in Rs 20 plus lakh segment.

The share price of Maruti crossed Rs 10,000 mark for the first-time ever, and hit an intra-day high of Rs 10,037 on the BSE on Wednesday after the company launched its new car - the Invicto - its first car in Rs 20 plus lakh segment.

The company's Invicto, a multi-purpose vehicle (MPV), prices starts at Rs 24.79 lakh (ex-showroom). Even before announcing the price, reports suggest that the company had received bookings for up to 6,000 units.

Maruti Suzuki India is expecting to double its revenues by 2030-31 (FY31) from the FY22 level through more sales, Managing Director and Chief Executive Officer Hisashi Takeuchi said on Wednesday. READ MORE

In terms of broader stock performance, Maruti has rallied over 19 per cent so far this year. In comparison, the benchmark Sensex has gained 7.5 per cent.

Charts & F&O Data Cues

Technically, Maruti trades with a positive bias on multiple time-frames, with the stock price trading firmly above key moving averages - 20-, 50-, 100- and 200-day. 

In the very near-term, the bias for Maruti is likely to remain bullish as long as the stock holds above Rs 9,900 level, indicates the daily chart. Break and sustained trade below Rs 9,900 level, could trigger a fall towards the 20-DMA (Daily Moving Average) which presently stands at Rs 9,600.

Meanwhile, the futures & options (F&O) data hints that the stock is likely to get considerable support in the range of Rs 9,700 - Rs 9,600; based on the open interest (OI) build-up on the Puts side. On Wednesday, July 05, the stock saw significant build-up in OI across Puts in the range of Rs 9,500 - Rs 10,000; suggest potential support zone.

On the other hand, highest OI among Calls is seen at 10,000 Strike Price followed by 11,000 and 10,500. Aggressive build-up of OI in Calls was seen at 10,800 and 10,700 Strikes, suggesting possibility of a maximum upside to this range in the July series.

To summarize, options OI suggests that Maruti could find considerable support in the 9,700 - 9,600 range; whereas, some resistance can be expected around Rs 10,350; above which the stock could potentially target the Rs 10,700 - Rs 10,800 zone.

So far in the July series the futures OI build-up suggests a ‘mildly positive’ stance, as the stock has gained over 4.5 per cent, while the OI has risen by mere 1.4 per cent.

As per the Fibonacci charts, key hurdles for Maruti this month lies at Rs 10,030 - Rs 10,150 - Rs 10,180; Whereas, potential upside for the stock is seen up to Rs 10,700 in this quarter.