Technical Analysis

Bajaj Consumer Care (₹349): Buy

Yoganand D BL Research Bureau | Updated on May 07, 2019 Published on May 08, 2019

The stock of Bajaj Consumer Care jumped 5.8 per cent accompanied by good volume on Tuesday, breaking above a key immediate resistance at ₹340. This rally gives short-term investors an opportunity to buy the stock at current levels.

Following a long-term downtrend, the stock found support at the 52-week low of ₹308 in early March this year. Subsequently, the stock changed direction triggered by positive divergence in the daily relative strength index. The stock has been in a short-term uptrend since March. After a minor corrective decline, the stock found support at ₹325 last week and started to trend upwards.

In the recent rally, has emphatically breached the 21- as well as 50-day moving averages and hovers well above them. There has been an increase in daily volume over the past three trading sessions. The daily RSI has entered the bullish zone from the neutral region. Also, the daily price rate of change indicator features in the positive territory implying buying interest.

The short-term outlook is bullish. It can continue to trend upwards. Targets are ₹363 and ₹370. Buy with a stop-loss at ₹341.

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

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