Bajaj Auto goes vroom, vroom, bounces back sharply
Bajaj Auto, the second largest two and three-wheeler manufacturer by market capitalisation has surged for the sixth consecutive day on Friday. The company which is a part of Nifty50 and has 7.5 per cent weightage in the Nifty Auto index surged as much as 3.5 per cent in Friday’s trade, registering more than 13.5 per cent overall gains since its recent lows near 2,705 level on June 28.
Most auto companies registered robust sales numbers for June 2018, and Bajaj Auto was no exception. The company posted 65 per cent YoY to 4.04 lakh units with domestic sales at 2.34 lakh units and exports at 1.7 lakh. The company reported its highest ever three-wheeler sales in 2018.
To continue with the growth momentum and to stand apart from the competition, the company has introduced a promotional combo of one-year free insurance for customers planning to buy their specific range of motorcycles plus 2-year free after sales service and thirdly, 5-year warranty package at no additional cost. The offer is valid up to July 31.
The stock price has discounted for the positive news and has been moving in an Upward sloping Channel pattern and had hit below the Main Trendline at 2,910 levels and fell to 2,705 levels which is near its multiple support zone. The stock bounced back and retested the Main Trendline at 2,975 levels on Friday supported by huge volumes and oscillators quoting above 65. With this, the stock provides more room to grow.