Stocks

Bajaj Electricals (₹437.8): Buy

Yoganand D BL Research Bureau | Updated on July 28, 2020 Published on July 29, 2020

The stock of Bajaj Electricals jumped 6.5 per cent with above average volume on Tuesday, decisively breaking above a key resistance level of ₹410. This rally has strengthened the bullish momentum and provides short-term investors an opportunity to buy the stock at current levels. Since it took support at ₹260 in early April this year, the stock has been in a medium-term uptrend. But in late June, the stock encountered resistance at ₹440 and started to move sideways in the band between ₹380 and ₹400 with an upward bias. The stock now tests next resistance at ₹440 with a positive bias. It trades well above the 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Besides, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest. There has been an increase in daily volume over the past one week. The short-term outlook is bullish for the stock. It can extend the uptrend and reach the price targets of ₹455 and ₹465 in the short term. Traders can buy with a stop-loss at ₹428 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on July 29, 2020
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