Technical Analysis: Bajaj Auto, Dixon Technologies and Voltas

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Bajaj Auto (₹7,736.8)

Hits record high

Bajaj Auto’s share price is on a steady upward trajectory since the beginning of 2023. It started the uptrend on the back of the support at ₹3,500. A couple of weeks ago, the stock price rose after it found the 20-day moving average at ₹7,000. It continues to form higher highs and higher lows. As it stands, the chances of the extension of the rally are high. But we could see a drop in price to ₹7,600 from here before a rebound.

So, traders can buy Bajaj Auto now at ₹7,740 and add longs in case the price softens to ₹7,600. Place stop-loss at ₹7,500 initially. When the stock surpasses the resistance at ₹7,800, revise the stop-loss upward to ₹7,600. Raise the stop-loss further to ₹7,700 when the price hits ₹7,900. Exit at ₹8,000.

Dixon Technologies (India) (₹6,237)

Resumption in uptrend

Dixon Technologies’ stock was charting a sideways trend within ₹6,200 and ₹6,600 between mid-December and mid-January. It slipped below the support at ₹6,200 two weeks ago and declined. But the support at ₹5,800 arrested the fall. Last week, the stock rebounded and closed above a hurdle at ₹6,000, increasing the probability of further rally. Thus, the chart shows that Dixon Technologies is on the verge of resuming the broader uptrend.

The stock shows potential for a rally to ₹6,800 in the coming weeks. Therefore, go long at the current level of about ₹6,240 and buy more if the price dips to ₹6,000. Place stop-loss at ₹5,750 initially. When the stock breaks out of ₹6,600, alter the stop-loss to ₹6,350. Liquidate at ₹6,800.

Voltas (₹1,058.5)

High volume breakout

Voltas’ stock price has been steadily appreciating since December last year. It found support at ₹820 and began the rally. However, after reaching ₹1,060 in mid-January, there was a moderation in price. But the scrip bounced off the support at ₹1,000 and made a fresh breakout last week. The breakout occurred with huge volumes.

The price action indicates that Voltas could see its price dip to ₹1,025 from the current level and then establish the next upswing in price. This can lift the stock price to ₹1,200. So, one can buy Voltas now at around ₹1,060 and accumulate at ₹1,025. Keep initial stop-loss at ₹980. When the stock hits ₹1,150, tighten the stop-loss to ₹1,075. Exit at ₹1,200.