Stock of the Day – Maruti

After the strong fall we saw yesterday in Maruti on the back of news of Suzuki setting up a 100% owned plant which inturn shall supply cars to Maruti, we saw the stock bounce back today though not one of equal measure. But while the bounce was not able to fully recapture the damage seen in yesterday’s trading, the volumes were something that has to be noted.

Delivered volumes were huge today, the kind of volumes we had not seen in a long time. The last time we saw similar delivery volumes was way back in July 2012. On the weekly chart below, we can see that the stock is moving in a pattern called as the “Widening Wedge”. Of course, since both trend-lines have seen only two touches, the confidence factor is not very high in the outcome such a pattern bring forth.