The firm reported a 17% drop in its standalone net profit for the September quarter, at Rs 3,069 crore, compared to Rs 3,716.5 crore reported in the same period last year and the Street’s estimate of Rs 3,525 crore.

However, the analysts believe that it was expected on account of a cyclical slowdown in automobile sales.

“I think that we need to just explore and track (the sector) a little closely, because if that is the situation, then certainly the medium-term prospects of the auto sector may get even more negative in that sense,” said Dipan Mehta, Director at Elixir Equities.

He further cautioned that one should brace themselves for three-four quarters of softer sales going ahead.

“I have seen this pattern in Maruti and other auto shares that one year, one-and-a-half year goes badly, then sales come back roaring because of new models, because of pent-up demand and overall demographics,” Mehta added.On the technical side, the stock is placed below all its significant short, medium and long term exponential moving averages (EMAs) with the RSI near the 28 level, indicating that the stock is in oversold territory.Also read: M&M shares rally 5% as co records highest ever SUV sales, grows by 25% YoY

The stock experienced a breakdown from its recent consolidation phase. Over the past few weeks, the stock has been moving within a tight range. However, the recent breakdown below this range has led to increased selling pressure, suggesting a shift in sentiment.

“This breakdown indicates that sellers are now dominating the market, pushing the stock lower as it struggles to hold previous support levels, which had previously acted as a base for potential upward moves. The current downward momentum could signal further bearish action unless a clear reversal pattern emerges,” said Hardik Matalia, Derivative Analyst at Choice Broking.

Matalia also believes that the stock being placed below its key moving averages and standing in the oversold zone on the RSI reinforces the stock’s bearish momentum and suggests further downside potential if no reversal occurs in the near term.

“For investors considering fresh buying, it would be wise to wait for signs of a reversal to confirm any upward movement. If MARUTI sustains above the 12,000 level, it may signal a renewed bullish trend, opening up the possibility of reaching new highs in the future,” advised Matalia.

Around 11:45 am today, the stock was trading 1.3% lower at Rs 10,967.80 on the BSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)