The outlook for the stock of Bajaj Electricals is bullish. The stock surged over 5 per cent on Wednesday. The strong 7 per cent rally this week has taken the stock well above the key resistance level of ₹525. Indicators on the charts are also positive. The 21-DMA has crossed over the 55- and 100-DMAs and is now heading higher to cross-over the 200-DMA as well. This indicates that the downside could be limited, and the current uptrend is likely to remain intact.

Immediate support is at ₹540 and the next support is at ₹525. An upmove to ₹585 is likely in the near-term. A strong break above ₹585 will then pave way for a further rise to ₹600 and ₹620 thereafter. Traders with a short-term perspective can go long at current levels and also accumulate on dips at ₹545. Keep the stop-loss at ₹530 for the target of ₹620. Revise the stop-loss higher to ₹565 as soon as the stock moves up to ₹580. The bullish outlook will get negated only if the stock declines below ₹525. But such a strong fall looks unlikely at the moment.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

comment COMMENT NOW