Today's Pick

Bajaj Corp (Rs 180.1): Buy

Yoganand. D | Updated on March 14, 2018 Published on September 27, 2012

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We recommend a buy in the stock of Bajaj Corp from a short-term perspective. It is apparent



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 ever since bottoming out from its February 2011 low around Rs 75, the stock has been on a long-term uptrend. Taking support at Rs 115 this June, the stock continued to trend upwards. It has been on a medium-term uptrend since then. The stock appears to have resumed its medium-term uptrend recently, following a corrective decline that got arrested at around Rs 165.

On Thursday, the stock jumped five per cent strengthening its bullish momentum. We notice that there is an increase in daily volume over the past three trading sessions. The stock is trading way above its 50- and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is featuring in this zone. The daily price rate of change indicator is on the brink of entering the positive terrain from the negative terrain while weekly indicator is hovering in the positive terrain.

Our short-term forecast on the stock is bullish. We expect its up move to prolong and reach our price target of Rs 188 or Rs 191 in the ensuing days. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 176.

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Published on September 27, 2012
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