BAJAJ-AUTO

Fundamental View- Bajaj Auto Ltd. is one of India’s leading two-wheeler and three-wheeler manufacturers with a strong global presence and popular brands like Pulsar, Platina, Dominar, RE (Three-Wheelers), and Chetak Electric. The company has a robust financial profile with a market cap of around ₹2.5-2.6 lakh crore, a P/E ratio of 32-35 times, ROE of over 24%, and virtually no debt, making it fundamentally sound. Nearly 40% of its revenue comes from exports, highlighting its global strength. Bajaj Auto also offers an attractive dividend yield of around 3.5-4%, supported by strong cash reserves. With increasing focus on the electric vehicle segment, particularly through its Chetak Electric brand, the company is positioned for long-term growth. Technical View- As seen on the daily chart, the stock is currently holding above both its 14-day and 55-day EMAs and is gradually moving towards testing its 200-day EMA. Throughout this week, the stock has traded within a range, showing steady support around the 55-day EMA. On 24th June, the stock made a low of 8343, followed by 8373 on 25th June, and 8361 on 26th June, finally closing at 8433. Today, the stock opened with a gap-up, made a low of 8414, and is currently trading around 8479. Over the last three trading sessions, strong support has been visible near the 55-day EMA, indicating buying interest at lower levels. Fundamentally, the stock remains strong, and technically, it has been holding above the crucial 8300 support zone while entering a correction phase. In my view, if the stock manages to close above the 8500 mark today, it could trigger a short-term bullish rally. The 8300 level continues to act as a strong support zone, and if the stock sustains its upward momentum, it may soon test the 8750-8800 levels, which also coincides with its 200-day EMA.