Trade Idea of The Day - Bajaj Auto Ltd Target Rs. 230 - Religare Broking Ltd
Bajaj Auto Ltd
BUY 29 SEP 11800 CALL Entry Range 100 -110 Target 230 Stop Loss 40
Rationale
* BAJAJ-AUTO has witnessed stiff resistance near the 11,800-11,900 zone. Recent candles indicate hesitation and profit booking around this hurdle, keeping the near-term bias cautious to bearish.
* The stock is currently trading below the 20-DEMA zone, and a sustained trade below this short-term moving average could reinforce selling pressure. The 50-day EMA near the 11,400 zone remains the next major downside support.
* Momentum indicators are also losing strength, with the 14-day RSI hovering near the 50 mark and MACD showing a bearish crossover with a negative histogram, indicating weakening buying momentum and a possible continuation of consolidation with a negative bias.
* A decisive break of the 50-DEMA zone could trigger further weakness towards 11,000–10,800. On the upside, the bearish view would weaken only above the 12,000 zone, which remains the key resistance zone.
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