Don't Neglect this Stock for Trading

  • Stock Market Analysis

About the company:
Bajaj Electricals (NS: BJEL ) is a consumer electrical equipment manufacturing company. Apart from this, it is also engaged in Engineering, Procurement, and Construction (or EPC) business. The stock is trading at a discount of 9.2% to its 52-week high level. The scrip’s 52-week high and 52-week low range is Rs 1,224 and Rs 398, respectively.

Technical observations:

One week time frame: (Fig 1)

Bajaj Electricals’ share broke out in the first week of February, after which it made an all-time high of Rs 1,224. Since then, the stock has consolidated in a range. The scrip seems to have broken out this week from a bullish flag pattern. Relative Strength Index (or RSI) is above 60. The RSI level also supports the bullish view on this security.
One day time frame: (Fig 2)

On a daily time frame, the stock has formed a rounding bottom pattern. Today we have seen a break out accompanied by heavy volumes. It is also supported with an RSI of 70 on the daily time frame. The stock closed at a vital resistance level. We expect this resistance to break out next week. The next significant resistance for the stock is at Rs. 1,200 level.
One-hour time frame (Fig 3)

The stock broke out on July 20, made a high of Rs 1,084, and then consolidated. Today, it again broke out and made a high of Rs 1,127 and then consolidated. Above-average volumes accompany this move.

We expect the stock to maintain positive bias and move higher in the short, medium, and long-term periods. Short-term traders should trade by keeping Rs 1,075 as stop loss on a daily closing basis. Traders with specific positions should keep a stop loss of Rs 965 on a daily closing basis (which is the previous swing low).

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  • Dalbir Singh @Dalbir Singh
    Like 1
  • Sathish Menon @Sathish Menon
    thank you for your insights
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  • dn stock @dn stock
    Good one
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  • Bmt Huf @Bmt Huf
    good analysis
    Like 1
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