Trade Idea of The Day - Bajaj Auto Ltd Target Rs.290 - Religare Broking Ltd
Bajaj Auto Ltd
BUY 23 NOV 10000 PUT SELL 23 NOV 9500 PUT Entry Range 145 – 155 Target 290 Stop Loss 80
Rationale
• BAJAJ-AUTO witnessed a sharp correction on the daily chart after facing rejection near its 20-DEMA zone, reflecting sustained selling pressure and weakening sentiment for the near term.
• After a decisive fall below its key moving average of 50-DEMA at the 10,800-10,700 zone, price are continue with a sell-onrise bias, indicating a key hurdle and limited near-term recovery potential.
• The key momentum indicator, 14-Day RSI, has slipped to the 40 mark, reflecting subdued momentum, while the MACD remains in negative territory with a bearish crossover and expanding negative histogram, reinforcing the prevailing downside bias.
• With a sustained break below the 10,000 mark, the correction could extend towards the 9,500-9,400 zone, which is aligned with the prolonged rising trendline support area.
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