Bajaj Holdings Reaches Resistance, Short-term Correction is Expected

BAJAJ HOLDINGS Daily NSE Stock Chart Technical Analysis:

Bajaj Holdings dropped today.  It opened at Rs 945 and closed at CMP 932.40.

Market Outlook:

• The price will fall further tomorrow. 
• Support is expected at 909 and then at 880 (if price falls below 909).  It should began rising back after reaching these levels.
• Don't buy or sell yet, lets wait for some signals.

Technical Indicators:

• There is a price channel within which this stock is rising speedily.  The swings are about Rs. 70 up and down within the price channel.
• If the price falls and reaches its support trendline and returns back, its a good time to buy.
• If the price breaks resistance trendline and rises upwards for 2-3 days with good trading interest, that's a buy signal.
• Price is continuously taking support at the short and medium moving averages.
• The last 3 days, candlesticks have stayed within the price range set on 3 Nov - Rs 915 - Rs 949 and turned negative.  This is signaling a fall in price for the time being.  We'll wait for the next swing to enter and exit.

My Strategy for Trading Fast Rising Stocks:

• Stocks like Bajaj Holdings which are rising steadily for a period of time, fall back much more quickly than they rise.  
• Hence, in such stocks, I don't buy and hold.  I usually buy at swing lows and sell at swing highs.  
• This gives me good profit without the risk of suddenly losing money, and keeps my bank account liquid and gives good consistent cash flow.  
• You may have a different strategy and all strategies are good, so if yours works for you, stick to it.  

BAJAJ HOLDINGS Daily NSE Stock Chart Technical Analysis


(Analyzed for Prashant, Rajkot)