Superior Profit

CUE Sight 360° - India Update. 4th Jan. 3 PM IST.

Stock: Bajaj Auto (India)

Industry Insight:

The Auto Truck & Motorcycle Parts Industry in India is neither particularly strong or weak, as seen from CUE Edge's Industry Strength Heat-Map - which is holding steady; a little bit on the weaker (magenta) side.

One cautionary sign is that it decelerated with Pace over last 5 Days, shown by magenta Pace Score.

Fundamental/Peer Insight: 

Fundamentally, Bajaj Auto is Overvalued (magenta Score). Probably not a time to take Long Positions, be it Long Term or Swing Trade. One could look for Shorts using Technical Charts.

The Stock is very near 52 Week High. Another reason not to look for Long-Term Buy. A more sound approach would be to Buy Fundamentally Stocks at Good Valuation when they fall and starts to go up, using CUE 360° Analysis.

There are other Overvalued Stocks in the Peer Group. You might be careful holding Longs on them and Protect Profit at a minimum.

Technical Insight:

While moving in Sideways Range, with Highs and Lows at around same level, Bajaj Auto (BAJA.NS) displayed a Bear Release (down arrow) Signal on 27th Dec. This Bear Release at Triple Top could be taken as a Box Swing Short Trade Setup.

The Short Trade could use Futures, or Jan Expiry Options provided Options Spread was narrow enough.

Stop Loss could be set at the CUE Protection Level (cyan dots). Price never went up or attempted to touch the Stop.

By 4th Jan, the Profit has become same as the Risk taken in the Trade. Price is at Support Level (yellow ascending Direction Line).

Swing Short Traders could book profit.

Long position holders in Bajaj Auto may watch the Stock carefully and not let profit erode if the Stock declines and breaks below Sideways Range.

Industry Strength Heat-Map will provide additional insight. If the Industry weakens in coming days/weeks, extra caution may be warranted.

BAJA Edge 2018-01-04_4-30-55.jpg  BAJA Vital 2018-01-04_4-19-30.jpg  BAJA HO 2018-01-04_4-08-11.jpg  BAJA HOFF 2018-01-04_4-09-22.jpg 

1 0