Bajaj Auto Limited (BAJAJ-AUTO) Stock - Complete Technical Analysis - Nov 07, 2024

Bajaj Auto Technical Analysis Price Trends, Support & Resistance Levels Stock Analysis 2024

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 Limiteds recent price action reflects a bearish sentiment, with the stock trading at 9,856, down significantly from its 52-week high. The stock has been consistently below its key moving averages, indicating weakness. A closer look at the price action over the last few days shows a series of lower highs, confirming the presence of a downtrend. The Stochastic RSI is in overbought territory, which might indicate a potential bounce, but the overall trend remains negative.

Key support levels are identified at 9,800 and 9,600, while resistance is likely around the 10,500 to 10,700 range, based on recent price rejection. The RSI, currently under 40, suggests a lack of buying interest, further reinforcing the bearish bias. Additionally, the stock's volatility is quite high, as evidenced by the Average True Range (ATR), signaling that there could be sharp price fluctuations ahead.

The Bearish Engulfing and Evening Star chart patterns have emerged, which are classic reversal signals that suggest further downside risk. With the MACD in negative territory and momentum indicators such as the Commodity Channel Index (CCI) and Awesome Oscillator also indicating weakness, the outlook remains unfavorable in the short term.

In summary, Bajaj Auto is underperforming and may continue its downtrend unless there is a strong reversal or market catalyst to shift momentum. Traders should keep an eye on the support levels and be cautious of further downside if these levels break.