Maruti Suzuki India, known as Maruti, is showing a potential counter-trend lower movement in its 1D chart based on Elliott Wave and Technical Analysis. The current mode is corrective with an impulse structure, with minor Wave 2 underway towards the 12700-800 zone. The invalidation point for this analysis is 13685.
Analyzing Maruti Suzuki’s daily chart, it appears that the stock has possibly completed its fifth wave at various degrees, including Minor, Intermediate, and potentially primary. The high was reached on July 31, 2024, and prices have fallen below Minute Wave ((4)) at 12367. The larger structure indicates that Intermediate Wave (4) bottomed around 6546 in March 2022, and the rally since then can be divided into five waves, terminating Intermediate Wave (5) around 13685. This suggests that a larger corrective wave may be underway against 13685, unless there is a push past that high, which would invalidate the bearish scenario.
Looking at Maruti Suzuki’s 4-hour chart, there is a potential top at 13685, indicating the end of Minor Wave 5 within Intermediate Wave (4). This wave unfolded as an ending diagonal, signaling exhaustion of the uptrend. Ending diagonals are typically followed by swift price reversals, as seen in the price action between 13685 and 12120 levels. The subsequent drop could be labeled as Minor Wave 1, followed by a corrective Wave 2. Another possibility is that Minor Wave 1 is still progressing and could result in another drop through 11576 lows before a corrective rally in Minor Wave 2.
In conclusion, Maruti Suzuki stock appears to be gearing up for a larger corrective drop, likely at an Intermediate degree, against 13685. This analysis is supported by Elliott Wave Analyst Harsh Japee’s interpretation of the charts. Traders and investors should keep a close eye on price movements in Maruti Suzuki, particularly around the key levels identified in the analysis, to confirm or adjust their trading strategies accordingly.
