Technicals suggest more downside for Bajaj Auto

Reuters Updated - December 24, 2018 at 01:00 PM.

Shares of motorcycles and three-wheeler maker Bajaj Auto Ltd fall as much as 2.33 per cent and breaks below a support at Rs 2,751.95

Support at Rs 2,751.95 is identified as the 14.6 per cent Fibonacci projection level of the downtrend from Feb. 2 high to Oct. 25 low. The stock also breaks below its 200-day exponential moving average, seen unfavourable.

The stock's wave pattern suggests, it is in the initial wave of a five wave downtrend (wave C). MACD cuts below its signal line, a bearish sign.

The stock is down 15.75 per cent this year as of last close, while the broader NSE index is up 2.12 per cent in the same period.

Published on December 24, 2018 07:30