Bajaj Auto Gains Momentum: Bullish Reversal in Focus

Bajaj Auto is showing signs of a strong technical recovery, with the stock closing at ₹10,900, up 1.32% in the latest trading session. The stock has bounced back from its recent lows and is now trading above its key moving averages, indicating improving bullish momentum. The price is trading above the 10 EMA (₹10,541), 20 EMA (₹10,491), 50 EMA (₹10,693), 100 SMA (₹10,876) and 200 SMA (₹10,317). This positive alignment suggests that buying interest is gradually strengthening. The RSI has recovered to 60.90, moving above its average of 46.39, indicating improving momentum without entering the overbought zone. MACD has also turned positive, with bullish momentum emerging after the recent correction. The ADX stands at 26.52, suggesting a developing directional trend. Additionally, the stock continues to respect its rising long-term trendline, keeping the broader technical structure constructive. Key Levels to Watch: Immediate Resistance: ₹10,950–₹11,000 Next Resistance: ₹11,200 Immediate Support: ₹10,700 Major Support: ₹10,500 My View: Bajaj Auto is showing encouraging signs of a bullish reversal. A sustained move above ₹11,000 could trigger further upside towards ₹11,200 and higher levels. However, failure to sustain above the resistance zone may lead to consolidation. Traders should watch volume confirmation before taking fresh positions. Disclosure: The analyst or his family does not have any position in the stock. BAJAJ-AUTO