Short Bajaj Auto between Rs 2365 and Rs 2400:: HDFC Securities

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Observation:
Bajaj Auto is now in an intermediate downtrend as the stock resumed its downmove last week after trading in a
narrow range.
Technical indicators are giving weak signals as the stock trades below the short term (13 day SMA) and medium
term (50-day SMA) moving averages. The 13-day SMA is also sloping down, which is a negative signal.
Momentum indicators like the 14-day RSI too are in decline mode and not yet extremely oversold. The 14-day RSI
is also below its 9-day EMA, which is not a healthy signal for the stock. The Relative Strength comparative
indicator too is in decline mode, indicating that the stock is underperforming the Nifty index.
However, given that the current downtrend is matured, we are recommending a trading range for entering the
short position. Our entry levels along with the stop losses are given above.

LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010656