Technical Pick: Buy Bajaj Auto Stock For a Target Price Of Rs. 4130

In the latest report, Prabhudas Lilladher has given a trade call with a good risk-reward ratio on a large cap auto stock. The brokerage firm has given a trade call for Bajaj Auto with a target price of Rs. 4130 and a stop loss of Rs. 3670.

As per the chart, the stock has seen a lot of volatility in the previous few weeks of trading sessions; however, the stock has fallen sharply in recent trading sessions. As per the latest report of Prabhudas Lilladher, the price has given a short-term trend reversal and can reach a target price of Rs. 4130 from the current market price.

Outlook of Bajaj Auto Ltd

The Bajaj Group's flagship company, Bajaj Auto, manufactures two- and three-wheeled vehicles and exports them to 79 nations, including many in Southeast Asia and Latin America. The company is the fourth-largest manufacturer of motorcycles and the largest manufacturer and seller of three-wheeler worldwide.

Bajaj Auto is a large-cap company with a capitalization of Rs. 109,197 Crores. The current market price of the stock is Rs. 3,774.

Buy Call of Prabhudas Lilladher On Bajaj Auto

According to Prabhudas Lilladher's latest report, the stock is a good pick for medium-term gains. "The stock after the short correction has bottomed near the significant 200DMA and trend line support of the ascending channel pattern on the daily chart and has indicated a decent pullback with improved bias. With the RSI is also well placed is on the rise and has indicated a trend reversal from the oversold zone with immense upside potential to continue the momentum. We suggest buying and accumulating this stock for an upside target of Rs.4130, keeping the stop loss of Rs. 3640."

Technicals of Bajaj Auto Ltd

The overall trend of the stock is an uptrend, but in the short term, the price has seen a sharp fall, but recently the price of the stock has been showing signs of a trend reversal. Here are the positions of technical indicators on the daily time frame -
• The stock price is making a spinning top pattern after a fall which points towards a trend reversal.

• The price is taking support below the 50-day moving average, but it is taking support at 200 day moving average multiple times.

• The RSI is moving rapidly to the upside; however, it is not currently looking in a good spot. The RSI currently is around 35 levels.

• The price is making a morning star pattern near a crucial demand zone, which again shows trend reversal.