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We recommend a buy in the stock of Bajaj Corp from a short-term perspective. It is apparent from the charts of the stock that after retracing 61.8 per cent fibonacci retracement level of its prior up move between February low of Rs 73 to September peak of Rs 132, the stock found support in the Rs 95-98 band in October.
However, the stock resumed its uptrend thereafter and has been on a medium-term uptrend. On November 30, the stock emphatically broke through its significant resistance at around Rs 108 by jumping 5.5 per cent with above average volumes. Moreover, this up move has breached its 50- and 200-day moving averages conclusively.
The daily relative strength index is featuring in the bullish zone and weekly RSI is inching higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator is steadily moving upwards in line with the stock price and has entered in the positive territory implying upward momentum.
We are bullish on the stock from a short-term perspective. We anticipate the stock to rally further and reach our price target of Rs 115 or Rs 120 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 109.5.
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