|Buy Range||2480 – 2580|
|Target||2800 – 2900|
|Duration||12 – 15 Trading Sessions|
|Potential Return^||8 – 12%|
|CMP#||Idea||Buy Range||Target||StopLoss*||Duration||Potential Return^|
|2600.55||BUY||2480 – 2580||2800 – 2900||2440||12 – 15 Trading Sessions||8 – 12%|
# CMP on Aug 02, 2019
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 2700.
^ The returns are calculated based on CMP#
Founded in 1945, Bajaj Auto Ltd is the third largest manufacturer of motorcycles and the largest manufacturer of three wheelers in the world. The company manufactures and sells motorcycles, three and four wheeler commercial vehicles and quadricycles and spare parts. Bajaj Auto’s consolidated revenue from operations increased 3.9% to Rs 7,755.82 crore from Rs 7,464.89 crore in the last quarter on a yearly basis.
|Sectoral Index||Nifty Auto|
TECHNICAL OBSERVATIONS (WEEKLY)
- Since October 2018 the stock is trying to form a base at around 2445 levels.
- The stock made a ‘Triple Bottom’ pattern on the weekly chart and formed a ‘Bullish Hammer’ candlestick pattern with long lower shadow at the recent bottom.
- Price has been holding above all important Moving Average parameters.
- Volumes have gone up along with price rise.
- Indicators like MACD and RSI turned bullish on Weekly Charts.
- The stock formed well defined Ascending Triangle Pattern over the last 6 months and breakout above the upper side shows further bullishness.
TECHNICAL OBSERVATIONS (DAILY)
- After a consistent down trend in the last two months, the stock price has registered a resolute breakout with sharp upside bounce in last 3 days.
- The positive divergence of RSI on the monthly chart, which supports the breakout in the stock.