Wednesday, 19 November 2008

Maruti Suzuki can test Rs 670-680: Mathew

Technical Analyst, E Mathew is of the view that Maruti Suzuki can test Rs 670-680.

Mathew told CNBC-TV18, "The valuations of Maruti Suzuki are absolutely mouthwatering and infact maybe in the selloff if I can get the stock between Rs 460 to Rs 470 it would be a dream buy. We have very strong support between Rs 460 and Rs 470 and that doesn’t mean that the stock will drift down on that level. I would stick my neck out and go to the extent of even seeing if once Rs 575 is crossed, which is incidentally a resistance zone. I am quite confident that irrespective of what the market does we could see Maruti going up all the way at something like Rs 670 to Rs 680."

He further added, "I find that this stock not only is much stronger than the rest of the auto pack but it looks stronger than quite a few of its index stocks. So I would wholeheartedly recommend and I would recommend averaging out also, which normally I don’t do in a falling market but here is a stock which one could certainly go ahead and do some averaging too."

Disclosure: Analyst, his family members and his group companies do not have any position in the above stock.

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.