Maruti : Mean Reversion

٢ مايو ٢٠١٩

Maruti has a tendency to reverse towards 10 & 20 days EMA if the gap between 10 EMA and price is 7-12% . It has taken support of 78.6% retracement of entire rally from 6300-7500 wave. Today market opened with gap but recovered from the low and now trading near day's high. It has also respected trendline support. All these looks singal of reversal towards mean and 38.2% retracement support.

Buying can be done at cmp 6660 with stop loss 6580 (closing) or 6525 (intraday) for target of 6900-7020.