BAJAJ-AUTO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | BAJAJ-AUTO | Market Cap | 2,59,120 Cr. | Current Price | 9,267 ₹ | High / Low | 10,187 ₹ |
| Stock P/E | 28.2 | Book Value | 1,100 ₹ | Dividend Yield | 2.27 % | ROCE | 37.6 % |
| ROE | 28.5 % | Face Value | 10.0 ₹ | DMA 50 | 9,498 ₹ | DMA 200 | 9,120 ₹ |
| Chg in FII Hold | -0.82 % | Chg in DII Hold | 1.29 % | PAT Qtr | 2,549 Cr. | PAT Prev Qtr | 2,480 Cr. |
| RSI | 44.1 | MACD | -145 | Volume | 2,51,912 | Avg Vol 1Wk | 3,92,418 |
| Low price | 7,088 ₹ | High price | 10,187 ₹ | PEG Ratio | 1.46 | Debt to equity | 0.00 |
| 52w Index | 70.3 % | Qtr Profit Var | 20.9 % | EPS | 327 ₹ | Industry PE | 29.0 |
📈 Chart & Trend Analysis: BAJAJ-AUTO is trading below its 50 DMA (9,498 ₹) but above its 200 DMA (9,120 ₹), with the current price at 9,267 ₹. This indicates mild bearish bias in the short term but long-term support remains intact.
📊 Momentum Indicators: RSI at 44.1 shows weak momentum, leaning towards oversold territory. MACD at -145 confirms bearish crossover, signaling short-term weakness.
📉 Bollinger Bands & Volume: Price is near the lower band, suggesting potential support but also weakness. Current volume (2,51,912) is below weekly average (3,92,418), showing reduced participation and lack of strong buying interest.
🔑 Support & Resistance Zones:
- Support: 9,120 ₹ (200 DMA), 7,088 ₹ (major low)
- Resistance: 9,498 ₹ (50 DMA), 9,800–10,000 ₹ (trendline resistance), 10,187 ₹ (52-week high)
Optimal Entry: 9,150–9,250 ₹ (near support)
Optimal Exit: 9,500–9,800 ₹ (resistance zone)
📌 Trend Status: The stock is consolidating with bearish bias, showing weak momentum and indecision around moving averages.
Positive
- Strong ROCE (37.6%) and ROE (28.5%) indicate excellent capital efficiency.
- Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
- Dividend yield of 2.27% provides attractive shareholder returns.
- Quarterly PAT improved to 2,549 Cr. from 2,480 Cr., showing earnings growth.
Limitation
- RSI and MACD both show weak momentum, signaling short-term pressure.
- Stock trading below 50 DMA, reflecting near-term weakness.
- Valuation slightly stretched with P/E (28.2) close to industry average (29.0).
Company Negative News
- FII holding decreased (-0.82%), showing reduced foreign investor confidence.
- Stock trading below 50 DMA, reflecting short-term weakness.
Company Positive News
- DII holding increased (+1.29%), reflecting strong domestic institutional support.
- Quarterly profit variation (+20.9%) indicates strong earnings momentum.
- EPS of 327 ₹ supports valuation strength.
Industry
- Industry PE at 29.0 is slightly higher than BAJAJ-AUTO’s PE (28.2), suggesting fair valuation relative to peers.
- Auto sector outlook remains favorable with rising demand in domestic and export markets, especially in two-wheelers and EV adoption.
Conclusion
⚖️ BAJAJ-AUTO is consolidating with bearish bias, trading below its 50 DMA but above its 200 DMA. Fundamentals remain strong with high ROE/ROCE, debt-free balance sheet, and attractive dividend yield, but weak momentum limits near-term upside. Traders may consider entry near 9,150–9,250 ₹ with exits around 9,500–9,800 ₹. Momentum confirmation is needed before aggressive positioning, as short-term signals remain weak despite strong fundamentals.
Would you like me to extend this into a peer benchmarking overlay comparing BAJAJ-AUTO against other auto sector stocks (valuation, ROE/ROCE, momentum) so you can see relative strength before deciding entry?