BAJAJ-AUTO - Swing Trade Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Swing Trade List📊 Swing Trade Analysis for BAJAJ-AUTO Ltd.
Swing Trade Rating: 3.6
⚙️ Technical View
Current Price ₹8,128 is below both DMA 50 ₹8,332 and DMA 200 ₹8,553 — suggests bearish short-term sentiment.
RSI (41.4): Approaching oversold zone — could imply a short-term bounce setup.
MACD (-64.2): Strong bearish divergence — momentum is still against upward movement.
Volume (2.19 lakh) vs. Avg (3.12 lakh) — declining participation, caution flag.
📉 Interpretation: Chart setup is weak with no strong bullish indicators yet; wait for signs of reversal before entering.
📚 Fundamentals
P/E (31.1) vs. Industry PE (31.1): Fair valuation — price is aligned with sector average.
PEG (2.99): High — indicates premium valuation compared to growth, not ideal for swing entry.
EPS ₹262 & Book Value ₹1,260: Strong financial base — quality company.
ROCE (28.1%) & ROE (22.8%): Excellent performance metrics — consistent profitability.
Debt-to-Equity (0.27): Reasonably low — adds stability.
Dividend Yield (2.58%): Attractive — solid long-term income but not crucial for swing.
PAT Qtr Dip: ₹2,196 Cr → ₹1,802 Cr (-10.4%) — shows cooling earnings.
FII/DII Change: Net FII reduction; DII uptick — mixed institutional confidence.
🧠 Verdict: Fundamentally strong, but technical setup is lacking short-term appeal.
✅ Optimal Entry Price
Entry Range: ₹7,950–₹8,000 — near psychological support zone, ideal if volume rebounds.
Stop-Loss: ₹7,850 — just beneath swing low to manage downside.
🚪 Exit Strategy (If Already Holding)
Conservative Target: ₹8,300–₹8,350 — near 50-DMA resistance.
Aggressive Target: ₹8,500–₹8,550 — aligns with DMA 200 if momentum builds.
Trail Stop-Loss: Adjust to ₹8,200 once price breaches ₹8,300 to protect gains.
💡 Final Thought
BAJAJ-AUTO is a structurally sound company that isn’t screaming “buy” for short-term traders right now. But if you're patient and catch a bounce at support, it could offer a steady swing. Let’s keep an eye on MACD and RSI for signs of reversal.
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