Check out this trade in Bajaj Electricals!

resr 5paisa Research Team

Last Updated: 15th December 2022 - 01:50 pm

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BAJAJELEC has broken out from its 22-day consolidation pattern 

Despite selling pressure in the market on Thursday, the stock of Bajaj Electricals Ltd has witnessed strong buying interest. It has soared nearly 6% and is one of the top gainers from the Nifty 500 stocks. With this, it has broken out from its 22-day consolidation pattern with heavy volume. The volume is found to be greater than 10-day, 30-day, and 50-day average volumes. The level of Rs 1200 acted as strong resistance for the past few days but has been broken decisively.

To support the strong breakout, the technical parameters indicate strong strength in the stock. The 14-period daily RSI (70.55) has jumped into bullish territory and is above its prior swing high. The MACD has indicated a bullish crossover, while there has been a sharp rise in OBV. The ADX (30) swings upwards and demonstrates a strong uptrend. The +DMI is well above the -DMI. The Relative Strength (RS) is in the positive zone and suggests outperformance of the stock against the broader market. Overall, the stock has become technically bullish and is expected to trade higher in the upcoming days.

In the past 3 months, the stock has jumped over 27%. It is above all its key moving averages and looks strong on the technical chart. With such positivity, the stock is expected to test the level of Rs 1320, followed by Rs 1400 in the short to medium term. One can keep a stop loss at the 20-DMA level of Rs 1145. Swing traders can find good momentum in this stock and can expect good gains in near future. Keep this stock in your watchlist to track its performance.

Bajaj Electricals Limited provides solutions for lighting and luminates, EPC, power distribution, and consumer durables businesses. With a market capitalisation of about Rs 13300 crore, it is one of the fastest growing midcap companies in its sector.

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