Bajaj Auto Gains 1.65%: 5 Key Factors Driving the Week’s Momentum

Monday, 23 February 2026: Positive Start Amid Broad Market Gains

Bajaj Auto began the week on a positive note, closing at Rs.9,905.60, up 1.01% from the previous Friday’s close of Rs.9,806.90. This gain outpaced the Sensex’s 0.39% rise to 36,817.86, signalling early strength in the stock. The volume was moderate at 4,049 shares, reflecting steady investor interest. The broader market optimism provided a supportive backdrop for the stock’s initial advance.

Tuesday, 24 February 2026: Market Weakness Weighs on Stock

On 24 February, Bajaj Auto reversed course, declining 0.82% to close at Rs.9,824.10 amid a broader market sell-off. The Sensex fell 0.78% to 36,530.09, reflecting negative sentiment across sectors. Despite the dip, the stock maintained strong liquidity with volume more than doubling to 9,822 shares. This day’s decline was a minor setback following Monday’s gains and set the stage for a strong rebound.

Thursday, 25 February 2026: Breakout to New 52-Week High and Surge in Derivatives Activity

Bajaj Auto delivered a standout performance on 25 February, surging 2.80% to close at Rs.10,098.75, marking a new 52-week high. The stock outperformed both the Sensex, which gained 0.41%, and its sector peers, reflecting robust buying interest. Intraday, the stock touched Rs.10,098.45, confirming its technical strength by trading above all key moving averages.

Significantly, this day also saw a surge in call option activity, with 7,609 contracts traded at the ₹10,000 strike price expiring on 30 March 2026. The open interest rose by 10.03%, indicating fresh bullish positions and growing investor confidence. The derivatives market turnover was substantial, with futures and options volumes reflecting active participation and anticipation of further upside.

This combination of price breakout and derivatives momentum underscored a strong bullish sentiment, supported by Bajaj Auto’s recent upgrade to a Buy rating by MarketsMOJO and a Mojo Score of 74.0.

Friday, 26 February 2026: Fresh 52-Week High Amid Sustained Momentum

Bajaj Auto continued its upward trajectory on 26 February, touching a new 52-week high of Rs.10,186.6 and closing marginally higher at Rs.10,108.80 (+0.10%). The stock’s performance was slightly below the Automobile Two & Three Wheelers sector’s gain of 0.59%, but it remained well above the Sensex’s modest 0.19% increase to 36,748.49.

The stock’s technical positioning remained robust, trading above all major moving averages and supported by strong fundamentals including a 23.08% average ROE and 22.64% operating profit growth. Market capitalisation reached Rs.2,82,293 crore, reinforcing Bajaj Auto’s leadership in the automobile sector.

Despite the positive price action, some caution is warranted due to rising interest expenses and a slight dip in delivery volumes, which may affect near-term margin coverage and investor participation.

Friday, 27 February 2026: Profit Booking Amid Market Weakness

The week concluded with a 1.38% decline in Bajaj Auto’s share price to Rs.9,968.95, reflecting broader market weakness as the Sensex fell 1.16% to 36,322.56. The stock’s retreat followed a week of strong gains and multiple new highs, suggesting some profit booking by investors. Volume moderated to 6,563 shares, indicating a cautious trading environment.

Despite the dip, Bajaj Auto outperformed the Sensex for the week, closing with a net gain of 1.65% versus the benchmark’s 0.96% loss. This relative strength highlights the stock’s resilience and underlying positive fundamentals amid volatile market conditions.

Key Takeaways from the Week

Strong Price Momentum: Bajaj Auto demonstrated robust price gains, hitting multiple 52-week highs and closing the week with a 1.65% gain despite a weakening Sensex.

Derivatives Market Activity: Significant surge in call option volumes and open interest at the ₹10,000 strike price indicates bullish positioning and investor confidence in further upside potential.

Fundamental Strength: The company’s solid financial metrics, including a 23.08% average ROE, 22.64% operating profit growth, and low debt-to-equity ratio of 0.08, underpin its market performance.

Valuation and Risks: Premium valuation metrics and rising interest expenses suggest caution. The operating profit to interest ratio at 11.89 times is the lowest in recent quarters, signalling tighter margin coverage.

Market Leadership: Bajaj Auto remains the largest player in the automobile sector with a market capitalisation exceeding Rs.2.8 lakh crore and strong institutional holdings of 22.91%.

Conclusion

Bajaj Auto Ltd.’s performance over the week ending 27 February 2026 reflects a blend of strong technical momentum, fundamental robustness, and active market participation. The stock’s ability to outperform the Sensex amid volatile conditions and its multiple new 52-week highs highlight its resilience and leadership in the automobile sector. While valuation premiums and rising interest expenses warrant monitoring, the sustained bullish sentiment in both the cash and derivatives markets suggests continued investor interest. Overall, Bajaj Auto remains a key large-cap stock demonstrating strength in a competitive industry landscape.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →