SHORT-TERM TRADING TIPS - Buy Bajaj Auto; target of Rs 1482/1500: Aditya Birla Money

Aditya Birla Money is bullish on Bajaj Auto and has recommended buy rating on the stock with a target of Rs 1482/1500 in its April 15, 2011 research report.

“Bajaj Auto, prices are in a short-term down trend from the recent high of Rs 1482 however have given a decent bounce back after testing the 55-day EMA in Wednesday’s session. However the intermediate-term trend (from February lows) is still up and historically any pull back within the same seems to be getting good support at the said moving average.”

“The 14-day RSI is hovering near the equilibrium while the very short-term Stochastic (5/3/3) has just made a bullish crossover near the oversold territory. Hence a break above immediate resistance near Rs 1410 could signal a turn around and keep the sentiment positive towards prior swing high of Rs 1482 and higher subsequently. Only an early close below the support zone of Rs 1363/1351 would turn the overall sentiment weak negating the upside potential. Buy Bajaj Auto initially above Rs 1410 and then on any dips to Rs 1400, with a target of Rs 1482/1500 and closing stop of Rs 1363,” says Aditya Birla Money research report.