Based on technical analysis, Bajaj Auto & Supreme Industries are identified as upside potential stocks. Both stocks have displayed promising structures and technical setups, including price volume contraction, and the potential to bounce back and breakout. Currently trading at Rs 9,702.30 and Rs 5,787.50 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a likely breakout scenario.
The daily chart of Bajaj Auto Ltd
On the daily chart, Bajaj Auto is presently showing a promising picture; the stock price is trading near 50-day EMA. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the range marked on the chart, with the support of decent volume.
Those considering a possible trade-in Bajaj Auto might purchase the stock at the current price with a precautionary level of Rs 9,350 on a closing basis and aim to capitalise above the 52-week high.
The stock price is currently trading above its 50-day EMA, suggesting it is likely about to turn short-term bullish once more after the signs of a breakout. The stock appears neutral when one looks at the Relative Strength Index, which is now trading at 58. The ADX of 14 indicates the present state of price momentum, which is moving with low momentum.
In the event of a retracement, it is essential to monitor key support levels, particularly at a 50-day EMA. The minor upper resistance is 52-week high and if the stock closes above 52-week high level, then it may consistently trade above current levels.
Bajaj Auto Ltd. engages in the manufacture and market of motorcycles and three-wheeler vehicles.
The daily chart of Supreme Industries Ltd
Supreme Industries’ current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 5,787.50 and may start the uptrend from the current levels as it is trading on the support level likely to bounce back. The stock price is currently trading above all the important moving averages and is likely to bounce from the 50-day EMA.
Those interested in possible trade in Supreme Industries could purchase the stock at the present price, setting a stop loss below Rs 5,400, and aim for a target price around a 52-week high.
The stock is trading above its all-important moving averages, and it is expected to find support near on 50-day EMA. The Relative Strength Index is trading near neutral levels at 47. This implies there may be potential for an increase in stock price strength. The ADX, now around 17, shows a low level of momentum and directional strength.
The level at the 50-day EMA serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock sustains the current level and trades above it.
Supreme Industries Ltd. engages in the business of manufacturing plastic products. Its product segments include plastic piping, industrial, packaging, consumer, and others. The company was founded on February 17, 1942 and is headquartered in Mumbai, India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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