Today’s pick is BAJAJHLDNG [stockquote]BAJAJHLDNG[/stockquote]. The stock hurried to to Rs. 800 point in 15 days at the start of the year. It then hovered around the level until September before a bullish breakout of the range. Since then the stock has been on an up-trend and saw its 52 week high of Rs. 1050 in January. In the last three months, the stock has moved +10% vs. a flat Nifty.
Oscillator RSI and CMO are in no man’s land. The stock is trading in the middle of a very narrow Bollinger band not giving any short-term directional bias. Short-term technicals saw a 4×9 bullish cross-over.
The MACD line and signal line are moving very close to each other without giving any directional bias. Also, Long-term and short-term GMMA lines can be seen contracting, unable to give any direction to the stock. The stock is again moving in a range.
BAJAJHLDNG’s average correlation with the Nifty is -0.01 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
BAJAJHLDNG has a historical volatility in the range of 0.2 to 1.0. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term Sell. A long-term buy would be a good idea given the trend-line in place. However, It is suggested to have broad trailing stop-losses to capture the upside in case sudden trend-reversal were to take place.
