Bajaj Auto Limited (NSE symbol BAJAJ_AUTO) has seen a hugeprice increase last trading day and thus many investors and traders must whobought the stock must be sitting on huge profits.
It is the estimate of this author that you may be better offexiting your long positions if you are short-term trader.
Next, we walk through a technical analysis rationale for abearish estimate of the stock.
The last working day’s price rise was a relatively strongerthan the recent average price daily price range. This candle, though stronglybullish in itself, takes the price too far away from the 50 SMA.
Next, at the time of writing (around 2:00 pm) a Doji candle isformed. A Doji candle has a tiny real body with respect to its day’s high-lowrange and after a strong move in either direction (up or down) indicates apause or a turn.
Finally, there is a possibility that the price jumps higher nexttrading day on Wednesday, January 27, 2021. But, realising of profit into hardcash is advisable given the technical analysis scenario as discussed.
Disclaimer: All the content is for education purposes only.