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BAJAJ-AUTO - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.4

Last Updated Time : 28 May 26, 06:46 pm

Technical Rating: 4.4

Stock Code BAJAJ-AUTO Market Cap 3,02,196 Cr. Current Price 10,810 ₹ High / Low 10,835 ₹
Stock P/E 30.7 Book Value 1,251 ₹ Dividend Yield 1.39 % ROCE 38.6 %
ROE 29.3 % Face Value 10.0 ₹ DMA 50 9,981 ₹ DMA 200 9,392 ₹
Chg in FII Hold -0.02 % Chg in DII Hold 0.28 % PAT Qtr 2,718 Cr. PAT Prev Qtr 2,549 Cr.
RSI 65.4 MACD 239 Volume 3,58,141 Avg Vol 1Wk 4,56,069
Low price 7,858 ₹ High price 10,835 ₹ PEG Ratio 1.46 Debt to equity 0.00
52w Index 99.2 % Qtr Profit Var 32.6 % EPS 352 ₹ Industry PE 28.0

  • 📈 Chart Patterns: BAJAJ-AUTO is trading at 10,810 ₹, very close to its 52-week high of 10,835 ₹. Support lies around 10,600–10,650 ₹, resistance near 10,850–10,900 ₹. Trendlines suggest strong bullish continuation.
  • 📊 Moving Averages: Price is well above 50 DMA (9,981 ₹) and 200 DMA (9,392 ₹), confirming robust medium- and long-term strength.
  • 📉 RSI: At 65.4, RSI is moderately overbought, signaling caution for fresh entries.
  • 📈 MACD: Strongly positive (239), confirming bullish divergence and momentum strength.
  • 📊 Bollinger Bands: Price is near the upper band, indicating volatility expansion and possible resistance zone.
  • 📊 Volume Trends: Current volume (3,58,141) is slightly below weekly average (4,56,069), showing reduced participation despite price strength.
  • 📌 Momentum Signals: Entry zone around 10,600–10,650 ₹; exit zone near 10,850–11,000 ₹.
  • 🔄 Trend Status: Trending strongly with bullish bias.

Positive

- EPS of 352 ₹ highlights strong earnings power.

- ROCE (38.6%) and ROE (29.3%) reflect excellent efficiency.

- PAT growth (+32.6%) shows strong quarterly performance.

- Debt-free balance sheet adds financial resilience.

Limitation

- RSI near overbought zone, limiting immediate upside.

- Volume slightly below average, reducing conviction in breakout.

- P/E of 30.7 vs industry average of 28.0 suggests mild overvaluation.

Company Negative News

- FII holdings decreased (-0.02%), showing marginal foreign investor caution.

Company Positive News

- PAT improved to 2,718 Cr. from 2,549 Cr.

- DII holdings increased (+0.28%), showing domestic institutional support.

- Dividend yield of 1.39% provides shareholder return.

Industry

- Industry P/E at 28.0 highlights sector trading at lower multiples.

- Auto sector remains buoyant with strong demand and export growth.

Conclusion

BAJAJ-AUTO is trending strongly with bullish bias supported by MACD, price above key moving averages, and strong fundamentals. Entry near 10,600–10,650 ₹ offers tactical positioning, with exit targets around 10,850–11,000 ₹. Overbought RSI and mild overvaluation warrant cautious trading with strict stop-loss discipline.

Would you like me to extend this into a sector overlay benchmarking against auto peers, or refine it into a swing trade outlook with medium-term targets?

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