BAJAJ-AUTO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.0

📊 Chart Patterns & Trend: BAJAJ-AUTO is consolidating near its recent high of 9,490 ₹. The current price (9,002 ₹) is above both 50 DMA (8,947 ₹) and 200 DMA (8,765 ₹), indicating medium-term strength but short-term indecision. The stock is holding above key moving averages, suggesting resilience despite weak momentum signals.

📈 Moving Averages:

- Price above both 50 DMA and 200 DMA confirms bullish undertone.

- Sustained support at 8,950 ₹ strengthens the consolidation base.

- Breakout above 9,200–9,300 ₹ could trigger momentum toward 9,490 ₹.

📉 RSI: At 41.4, RSI is weak but not oversold, reflecting limited buying strength.

📉 MACD: Slightly negative (-9.13), showing weak bearish crossover and short-term consolidation.

📊 Bollinger Bands: Price is near the mid-band, confirming sideways consolidation with potential breakout signals.

📊 Volume Trends: Current volume (3,71,054) is slightly above the 1-week average (3,60,419), showing steady participation and accumulation.

🎯 Entry Zone: 8,950–9,000 ₹ (near 50 DMA support).

🎯 Exit Zone: 9,300–9,450 ₹ (near resistance trendline and 52-week high).

⚡ Support Levels: 8,765 ₹ and 7,088 ₹.

⚡ Resistance Levels: 9,300 ₹ and 9,490 ₹.

Positive

• Strong ROCE (37.6%) and ROE (28.5%) highlight excellent capital efficiency.
• Debt-free balance sheet ensures financial stability.
• Dividend yield of 2.39% provides attractive income return.
• Quarterly PAT growth (2,480 Cr. vs 2,096 Cr.) shows strong earnings momentum.

Limitation

• RSI weak at 41.4, showing limited buying strength.
• MACD negative, indicating short-term consolidation.
• FII holdings decreased (-0.64%), showing reduced foreign investor interest.
• Valuation slightly above industry average (P/E 28.8 vs industry 29.6).

Company Negative News

• Weak momentum indicators (RSI and MACD) suggest short-term consolidation.
• FII outflows (-0.64%) may weigh on sentiment.

Company Positive News

• Quarterly PAT increased 11.9%, showing strong profitability.
• EPS of 313 ₹ supports long-term earnings visibility.
• DII inflows (+0.77%) reflect strong domestic investor confidence.

Industry

• Industry P/E at 29.6, close to BAJAJ-AUTO’s 28.8, suggesting fair valuation.
• Automobile sector outlook remains strong with rising demand and export opportunities.

Conclusion

⚖️ BAJAJ-AUTO is consolidating with weak RSI and slightly negative MACD, but strong fundamentals and volume support provide resilience. Short-term traders may consider entry around 8,950–9,000 ₹ with exits near 9,300–9,450 ₹. The stock is consolidating, awaiting breakout above 9,300 ₹ for trend continuation toward 9,490 ₹.