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BAJAJ-AUTO - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 4.0

Stock Code BAJAJ-AUTO Market Cap 2,65,267 Cr. Current Price 9,491 ₹ High / Low 9,888 ₹
Stock P/E 28.9 Book Value 1,100 ₹ Dividend Yield 2.24 % ROCE 37.6 %
ROE 28.5 % Face Value 10.0 ₹ DMA 50 9,281 ₹ DMA 200 8,928 ₹
Chg in FII Hold -0.82 % Chg in DII Hold 1.29 % PAT Qtr 2,549 Cr. PAT Prev Qtr 2,480 Cr.
RSI 54.6 MACD 65.5 Volume 5,47,355 Avg Vol 1Wk 3,80,651
Low price 7,088 ₹ High price 9,888 ₹ PEG Ratio 1.49 Debt to equity 0.00
52w Index 85.8 % Qtr Profit Var 20.9 % EPS 327 ₹ Industry PE 27.2

📈 Technical Analysis

  • Chart Patterns: Price is above both 50 DMA (9,281 ₹) and 200 DMA (8,928 ₹), showing strength.
  • Moving Averages: Current price (9,491 ₹) is comfortably above DMAs, indicating bullish bias.
  • RSI: At 54.6, neutral to slightly strong, suggesting steady momentum.
  • MACD: Positive (65.5), confirming bullish momentum.
  • Bollinger Bands: Price is near upper band, showing strong buying interest.
  • Volume Trends: Current volume (5,47,355) is above 1-week average (3,80,651), indicating strong participation.

📊 Momentum & Trend

  • Short-term Momentum: Bullish with RSI stable and MACD positive.
  • Support Zone: 9,400 ₹ – 9,450 ₹ (near current levels).
  • Resistance Zone: 9,800 ₹ – 9,850 ₹ (recent highs).
  • Trend: Trending upward with bullish bias.
  • Optimal Entry: Around 9,400 ₹ – 9,450 ₹ if support holds.
  • Optimal Exit: Around 9,800 ₹ – 9,850 ₹ unless breakout continues.

✅ Positive

  • Strong ROCE (37.6%) and ROE (28.5%), showing excellent efficiency.
  • Debt-free company (Debt-to-equity 0.00).
  • Dividend yield of 2.24% provides investor returns.
  • Quarterly PAT growth (2,549 Cr vs 2,480 Cr), showing earnings momentum.

⚠️ Limitation

  • P/E (28.9) is slightly higher than industry average (27.2), suggesting valuation premium.
  • Book value (1,100 ₹) is much lower than current price, indicating stretched valuations.
  • FII holding decreased (-0.82%), showing reduced foreign investor confidence.

📉 Company Negative News

  • FII holding decreased (-0.82%), showing weaker foreign sentiment.

📈 Company Positive News

  • DII holding increased (+1.29%), showing strong domestic institutional support.
  • Quarterly profit growth of 20.9% indicates operational improvement.

🏭 Industry

  • Industry PE at 27.2, slightly lower than company PE, suggesting valuation premium.
  • Sector outlook remains strong with consistent demand in auto industry.

🔎 Conclusion

  • Stock is trending upward with bullish signals and strong fundamentals.
  • Entry near support (9,400 ₹ – 9,450 ₹) could be favorable for short-term traders.
  • Exit near resistance (9,800 ₹ – 9,850 ₹) unless breakout confirms further upside.
  • Long-term investors may benefit from strong profitability and dividend yield, but should monitor valuation risks.

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