Maruti Suzuki Q1 results: How to trade in Maruti Suzuki ahead of its June quarter earnings?

Maruti Suzuki's Q1 revenue could grow in the range of 8%-9% YoY to ₹35,000 to ₹35,200 crore. The carmaker's net profit could grow between 35%-36% YoY to ₹3,300 to ₹3,450 crore, helped by robust sales in the commercial vehicle segment.

In addition, the company's EBITDA margin could increase by 250 to 280 basis points to over 12% as a result of improved capacity utilisation and lower raw material prices.

Ahead of its Q1 results, Maruti Suzuki shares are trading 0.8% higher at ₹12,986. The stock has gained over 23% this year.

Technical view

Maruti Suzuki has been consolidating between ₹13,000 and ₹12,000 range since March 2024. Despite multiple attempts, the stock has failed to break the rectangle pattern on either side on closing basis. However, it continues to hold its 20 week moving average and is trading above it.

Additionally, the stock is experiencing a crossover of its short-term 20 day moving average and 50-day moving average on the daily chart (DMA), trading near its crucial trendline resistance. The stock has failed to break above this trendline on three previous occasions and has encountered resistance in this area. Directional traders should closely monitor stock's movement around this trendline, a break above or below it will offer further clues.

Options overview

Open interest data for the 29 August expiry shows a high concentration of call option at 13,000 strike, suggesting resistance for Maruti Suzuki around this level. Conversely, the put options base is set at 12,000 strike, establishing it as the support zone.

Options strategy for Maruti Suzuki

Given the implied movement of ±5.5% from the options market ahead of the 29 August expiry, traders can consider using long and short Straddle strategies to capitalise on the anticipated volatility and potential price swings.

Disclaimer

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.