Market sentiments hit Bajaj Auto rally
The company with highest market capitalization in the 2-3 wheeler segment, Bajaj Auto, posted its Q3FY18 earnings report on Friday. The stock witnessed tremendous volatility amid robust January sales and Q3 performance on one hand and a sharp plunge in the overall markets on the other hand. Nevertheless, Bajaj Auto made a record high at the opening tick itself.
The company reported January sales growth of 46 per cent with 353147 units as against 241917 units sold in the corresponding month of the last year. Domestic sales rose 50 per cent to 20219 units, with motorcycles and commercial vehicles rising 36 per cent and 154 per cent, respectively. Company’s total revenue increased nearly 19 per cent YoY to Rs. 6,369.34 crore, while Net Profit grew marginally by 3 per cent to Rs. 952.44 crore.
The stock of Bajaj Auto had given a multiple resistance breakout on closing basis at 3363 levels on February 1, 2018 with justifiable volumes and 14-period RSI quoting at 67 depicting momentum. Likewise, the stock attempted to continue with the rally but refrained from highly pessimistic market sentiments.
Thereby, the stock retreated after hitting all-time high at 3472.60 and fell near to the multiple point upward sloping trendline support level. The retreat could be treated as a pullback after a breakout. Thereby, in case the stock bounces back from here it holds a good potential upside in the coming sessions.