Bajaj Auto Finance

We recommend a buy in Bajaj Auto Finance from a short-term horizon. It is evident from the charts that the stock has been on an intermediate-term uptrend, forming higher peaks and troughs since March low of Rs 43. In mid-July, the stock took support around Rs 140 and resumed its uptrend. It is trading well above 21- and 50-day moving averages. On September 1, the stock jumped 8 per cent accompanied with good volume, penetrating the short-term resistance at Rs 215. This break through has reinforced the stock’s bullish momentum. Both the daily as well as weekly relative strength indices are featuring in the bullish zone. The daily moving average convergence and divergence is signalling a buy. Our short-term outlook is bullish on the stock. We anticipate the uptrend to continue until it hits our price target of Rs 247. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 212.

via BL