Buy Bajaj Auto May Future at Rs 3059
Stop loss : Rs 3020
Target: Rs 3125
Rationale:
Long build-up was seen in the Bajaj Auto Futures’ on Thursday, where we have seen 8% rise in Open Interest (OI) with price rising by 0.60%.
Stock price has been forming higher-top, higher-bottom formation on the weekly chart.
The stock is trading above its 5, 20 and 200-day simpole moving average (SMA), indicating that the counter is in an uptrend for all the time frames.
Oscillators and Mometum Indicators, like RSI and MACD, are showing strength on the weekly charts.
============================
The author is a Senior Technical & Derivative Analyst at HDFC Securities
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
