Maruti has seen a strong uptrend from the levels of Rs512 from the last week of January 2009 to the levels of Rs715-720 in the current week.
However, as observed in the Monday’s session, the stock struggled to cross past the crucial resistance levels.
Moreover, it fell below the support of its lower trendline, breaking down from the bullish price channel.
Such an attempt to breakdown from the similar pattern last week proved to be false. So traders need to wait for confirmation for the downward trend.
A fall below Rs685-690 levels will infuse more pressure on the downside. Maintain a stop loss of Rs712 for an initial target of Rs667.