Maruti - Positional Long

Maruti seems like good long positional trade. I am long in futures market since 8900.In my previous chart I had explaind that I was waiting for a bounce from about 8873. On 3rd July I entered long.

Immediate Target ~9600. SL below 9000. Maruti put OI has max addition at 9000 strike and call OI has max addition between 9400-9700 strike. These could form the basis of SL & Target. Also ref to the fibonacci levels on the chart for target/SL.

- Daily chart shows that 200 MA was support for some time. Now it has decisively bounced off that line (purple line on chart)

- Today's daily candle (4th July) has touched the Upper Bollinger Band (2 std dev). That usually results in the candles climbing along the upper band for some days.

- Daily chart shows Chikou Span emerging clear from all congestion on the Ichimoku Chart. ADX is 13 which is low but that has great scope to go up. And D+ has clearly crossed over D-

- The Weekly chart shows this week's developing candle has taken support at the top edge of the Senkou Span in the Ichimoku Cloud and the Stochastics are crossing the 50 line. That looks good.

There could be some retracements obviously (so please be careful) but I will hold my long position for some time since I am going by the weekly and daily charts only and have traded long (with some profit booking) since May 30th when I posted my earlier Maruti chart.

Trade closed manually: Closed @ 9500 for about 600 points gain per lot (July Futures). Retracement could go down to:


These are levels to watch out for before going long
Comment: Have been trading long based on this analysis since about 8580 and booking profits along the way. This analysis resulted in my getting about Rs1500 per lot in Maruti futures. It worked out very well.

Today I again went long in hte futures market. Shall post my analysis this weekend