We had posted our bullish
view on Bajaj Auto
on 2nd April 2019 (report is appended below). Buying was advised in 2825-2810 range which couldn't initiate. Stock posted bottom 2831 on 3rd April (green arrow) and then started upward journey in zig zag
style. On 23rd May, it tested high of 3145 and then saw correction. We'll remain bullish
on counter till the time it is trading above 2970. MACD
has turned bullish
on daily chart
and still above 0 line which means short term uptrend is still intact. Any correction in scrip towards 3050-3030 zone would be an opportunity to buy with stop loss below 2970 for target 3200 & 3280. One interesting thing is that it has closed above 61.8% correction of entire downward move from 3400 to 2400 zone. Normally, we assume that if stock corrects more than 61.8% of any trend ( bullish
) , then the trend is over.
Fact Check : Hamara Bajaj is the only 2 wheeler company which has shown double digit growth in last year. Export is major contributor which makes it truly global company.