The Bajaj Group Solar System

JC Parets
March 12, 2021

The universe comprises several solar systems- big and small. Similarly, the market comprises several conglomerates- big and small. We're back with another such conglomerate that we'd like to look at today- Bajaj Group.

One of the oldest and most reputable conglomerates of India, the Bajaj Group has been instrumental in generating great returns for investors across the board over the years.

Let's take a look at what the charts have to say.

We created an equally weighted custom index of the Bajaj Group constituents. A big base breakout can be seen here as is the case with several charts in the market. The Bajaj Group seems to have moved out of a four-year base and looks good for another leg of the rally.

Click on chart to enlarge view.

Now let’s take a look at individual stocks and where they stand at present.

Bajaj Auto broke out of its long-term resistance at 3,468 and continued to progress towards the target of 4,500. Currently trading in no man's land, the stock is positive as long as it remains above its breakout level, with a target near 4,500.

Bajaj Finserv has been playing with its resistance at 9,950 but hasn't sustained its breakout above that level. While the indicator is still in near bullish territory, the price has to hold its ground above the level of 9,950, to get to the level of 13,640. We are bullish only when the price maintains its move above 9,950. Until then, we'll gladly wait.

Bajaj Finance has been hovering close to its all-time highs. This is something we like to see in a stock. The price hovering close to its highs signifies the strength in the move whereby the demand continues to hold the price at higher levels.

Pullbacks towards the risk management level of 4,920 can be used as buying opportunities with a target near 6,865.

Bajaj Holdings & Investment Ltd. moved past its resistance at 3,310 and is now headed towards 3,950- its 2020 highs. The indicator is in a bullish regime indicating a good move going forward. The next actionable level would be above the level of 3,950 with a target near 5,490.

Bajaj Consumer Care has broken out of a two-year base with a move above 272. As the price has found it difficult to cross this level on three occasions in the past, it remains to be seen if this level is conquered. We are bullish only above the level of 272, with a target near 370.

Maharashtra Scooter is trying to make its way past the level of 3,750 which has been hard to break out of. But the price moving sideways rather than moving lower, is a good sign. Narrow consolidations lead to big massive moves in the direction of the breakout, so this is definitely something to track.

We are bullish above the level of 3,750 with a target near 4,950.

Hercules had recently breached its downward sloping trendline as well as the 38.2% Fibonacci retracement of the bearish move. With this breakout, the indicator moved closer to a bullish regimen and the price is still trading above 118.

We are bullish above the risk management level of 118, with a target near 163.

Mukand Engineers has been making higher highs and higher lows since the April 2020 recovery. The indicator is moving towards the bullish momentum territory and price is yet to breach its resistance.

We are bullish only above the level od 16.50, with a target near 22.

This was a round-up of the Bajaj Group. While certain constituents are yet to make big waves going forward, the breakout in the equally weighted custom index suggests that these are definitely some stocks to keep on the radar.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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