Technical Analysis of Bajaj Auto

The stock $BAJAJ-AUTO recently saw a sharp drop falling by more than 4% and breaking below the 10,000 mark. The stock had a very strong uptrend earlier this year climbing steadily and hitting a peak near the 11,000 level around late May/early June. Right now, it is in a short-term correction phase. The recent formation of lower highs and large red candles indicates that sellers are currently in control of the short-term momentum. Support the immediate strong support zone is around 9300 to 9400. This is an area where the price previously spent some time consolidating around March and April before breaking out higher. Resistance If the stock tries to recover it will immediately face resistance at the 10,000 psychological mark. For short-term buyers the stock is currently showing strong bearish momentum after breaking below the 10,000 level, making it risky to enter until it stabilizes near the major support zone of 9300–9400. For existing holders there is no major reason to panic if your view is long-term as the overall structural uptrend remains intact despite this sharp correction. However holding your positions with a strict stop-loss below the 9300 support is crucial to protect your capital from a deeper downside. New buying positions should only be considered once the stock forms a clear bullish reversal pattern or holds firmly at its support levels.