Todays Pick

Bajaj Consumer Care (₹292): Buy

Yoganand D BL Research Bureau | Updated on May 27, 2021

The stock of Bajaj Consumer Care advanced 3.7 per cent accompanied by above average volume on Thursday and has reinforced the bullish momentum. This rally provides investors with a short-term view an opportunity to buy the stock at current levels. Since registering a multi-year low at ₹116.5 in March 2020, the stock has been in an intermediate-term uptrend. Medium-term trend is also up. After recording a 52-week high at ₹323.5 in late April this year the stock was on a near-term corrective decline until it found support at around ₹264 in early May.

Subsequently, the stock started to trend upwards and recently surpassed its 21- and 50-day moving averages. The stock now trades well above these moving averages. The daily relative strength index has entered the bullish zone from the neutral region from the neutral region and the weekly RSI continues to feature in the bullish zone. There has been an increase in volume over the past five trading sessions.

Both the daily and the weekly price rate of change indicators are hovering the positive terrain implying buying interest. The short-term view is bullish. The stock can trend upwards and hit the price targets of ₹304 and ₹310 levels. Traders can buy the stock with a fixed stop-loss at ₹285.

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

Published on May 28, 2021

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