Maruti - First Gear or Reverse!

Maruti has been struggling to move upwards since mid- september. The stock had a strong rally to hit its previous high, but things have not been as bright since then. The stock has been languishing at 960s and broke this level only twice in the past one month. Yesterday's break-out was not strong either.

• The volumes are not encouraging as there is hardly any new buyers in this stock
• MACD is close to giving a 'buy' signal currently. A signal for a 'buy' did occur once last month. However, the stock did not have the strength to move upwards. RSI is in a comfortable zone currently
  

If this stock has to breakout, any price above 1000 would be a good level to buy. However, the upside for the stock immediately would be around Rs. 1040-1050 giving a limited upside of only about 5%. However, any downside in the stock would be close to Rs. 900-920 with the next level at Rs. 855.