Trade Idea of The Day - Bajaj Auto Ltd Target Rs. 80 - Religare Broking Ltd
Bajaj Auto Ltd
BUY 28 JUL 10400 CALL SELL 28 JUL 10800 CALL Entry Range 120-130 Target 80 Stop Loss 200
Rationale
1. On the daily chart BAJAJAUTO continues to trade with a positive bias, holding comfortably above the 20-DEMA and 50-DEMA, indicating sustained bullish momentum on the broader timeframe.
2. Momentum indicators remain supportive, with the RSI hovering near the 60 mark, reflecting improving strength without entering the overbought territory. Meanwhile, the MACD histogram traded in positive trajectory after a sustained bullish crossover.
3. As long as the prices sustains above the 10,000-10,100 support zone, every minor dip is likely to attract long positions. On the upside, the stock has the potential to extend its rally towards 10,800, followed by 11,000. 4. To capitalize on this bullish structure, one can consider a buy-on-dips approach in a Bull Call spread with buying in the ATM CE and selling in the CE of recent swing high of 10,800.
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