Trade Idea of The Day - Bajaj Auto Ltd Target Rs. 240 - Religare Broking Ltd
Bajaj Auto Ltd
BUY 30 JUN 10300 PUT SELL 30 JUN 10000 PUT Entry Range 120-130 Target 240 Stop Loss 60
Rationale
• Bajaj Auto has formed a series of lower lows on the daily chart, indicating a sustained profit booking and recently slipped below the 10300 zone aligned with the 20-DEMA, which suggests a weakening bullish momentum and increasing selling pressure at higher levels.
• The stock is now expected to retest its 50-DEMA support zone around the 10000 mark. A decisive breakdown below this level could accelerate downside momentum towards the 9500 strong support zone in the near term
• Momentum indicators are also losing strength. RSI has slipped near the 50 mark, while the MACD has generated a negative crossover with declining histogram bars, signalling a continuation of the corrective phase.
• Unless the stock prices reclaims 10500 immediate hurdle zone decisively, the bias is likely to remain negative with a sell-on-rise approach favouring traders.
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