Bajaj Auto Limited (BAJAJ-AUTO) Stock - Complete Technical Analysis - Oct 14, 2024

Bajaj Auto Technical Analysis: Key Levels and Market Trends You Should Know

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Bajaj Auto Limited is currently trading at 11,899.30, showing resilience as it sits 6.85% below its 52-week high of 12,774.00 achieved on September 27, 2024, and significantly above its 52-week low of 5,032.00 from October 16, 2023. The stock's price action has shown notable indecision recently, characterized by a spinning top pattern observed today, indicating market uncertainty.

In terms of support and resistance, critical levels to watch include 11,859.30 as a short-term support level, while the upper resistance is likely near 12,034.88, based on the 20-day simple moving average (SMA). The average directional index (ADX) is at 38.05, suggesting a strong trend in the market. However, the relative strength index (RSI) of 56.05 indicates the stock is nearing overbought territory, which could lead to price consolidation or a pullback.

The momentum indicator shows a downward trend, indicating that a potential reversal could occur if buying pressure does not pick up soon. Additionally, the Stochastic RSI and Williams Percent Range suggest bearish momentum, potentially confirming that the stock may face selling pressure in the short term.

Volatility is highlighted by the average true range (ATR) of 304.60, indicating that the stock is subject to significant price movements. Recent trading days saw fluctuations with the stock opening at 11,928.80 today, reaching a high of 11,990.10, and closing at 11,899.30, revealing a narrow range and thus indicating some caution from traders.

In summary, traders should closely monitor the support level around 11,859.30 and the resistance level near 12,034.88. Given the current indicators, it may be prudent to remain cautious, as the potential for sudden price drops or surges exists, particularly as the stock approaches its historical highs.