Bajaj Auto Gains 4.79%: 6 Key Factors Driving the Week’s Momentum

29 December 2025: Modest Gain Amid Broader Market Weakness

Bajaj Auto began the week with a modest gain of 0.19%, closing at Rs.9,083.95, while the Sensex declined by 0.41% to 37,140.23. The stock’s resilience in a weakening market set a positive tone for the days ahead. Trading volume was moderate at 4,219 shares, reflecting steady investor interest. This initial outperformance hinted at underlying strength in the stock relative to the broader market.

30 December 2025: Surge in Call Option Activity Spurs 2.24% Rally

The stock surged 2.24% to Rs.9,287.75 on 30 December, outperforming the Sensex which was nearly flat, down 0.01%. Bajaj Auto emerged as the most actively traded stock in call options, with 2,927 contracts at the Rs.9,300 strike price ahead of expiry. This bullish positioning reflected investor optimism for a near-term upside breakout. Delivery volumes rose sharply to 1.89 lakh shares, a 56.18% increase over the five-day average, signalling strong accumulation by long-term holders.

31 December 2025: Continued Call Option Interest and Steady Gains

Bajaj Auto extended its rally with a 0.60% gain to Rs.9,343.20, outperforming the Sensex’s 0.83% rise. The stock remained the most actively traded in call options for the 27 January 2026 expiry, with 5,716 contracts at the Rs.9,300 strike price generating a turnover of ₹1194.79 lakhs. Delivery volumes increased to 2.24 lakh shares, a 68.43% rise over the five-day average, confirming strong investor participation. The stock’s proximity to its 52-week high of Rs.9,490 bolstered bullish sentiment.

1 January 2026: New 52-Week High at Rs.9,480 Marks Momentum Peak

On the first trading day of the new year, Bajaj Auto hit a new 52-week high of Rs.9,480, closing at Rs.9,560.60, up 2.33%. This marked the fourth consecutive day of gains, delivering a cumulative return of 4.56%. The stock outperformed its sector by 0.35%, supported by strong technical indicators with prices above all key moving averages. The Sensex also advanced 0.14%, reflecting a broadly positive market environment. Delivery volumes rose modestly to 1.45 lakh shares, indicating sustained investor confidence.

2 January 2026: New 52-Week High at Rs.9,604.65 Amid Mixed Signals

Bajaj Auto reached another 52-week high intraday at Rs.9,604.65 but closed slightly lower at Rs.9,500.85, down 0.62%. Despite the intraday dip, the stock maintained a five-day gain of 5.8%. The Sensex closed up 0.81%, while the automobile sector gained 0.55%. Bajaj Auto underperformed the sector by 0.48% on the day, reflecting profit booking and cautious sentiment. The stock saw heavy trading volumes of 34,596 shares with a total traded value exceeding ₹186 crores, underscoring strong liquidity. Elevated put option activity at strike prices below the current market price suggested increased hedging and bearish positioning ahead of the January expiry.

Daily Price Comparison: Bajaj Auto vs Sensex (29 Dec 2025 – 2 Jan 2026)

Key Takeaways from the Week

Positive Signals: Bajaj Auto demonstrated strong price momentum, gaining 4.79% over the week and outperforming the Sensex by 3.44%. The stock’s consistent trading above all major moving averages and new 52-week highs on 1 and 2 January underscore robust technical strength. Elevated call option activity at the Rs.9,300 strike price ahead of expiry reflected bullish investor sentiment and anticipation of further upside. Rising delivery volumes indicate genuine accumulation by long-term investors, supporting the stock’s medium-term outlook.

Cautionary Signals: Despite the overall gains, the stock experienced a slight pullback on 2 January, underperforming the automobile sector and broader market. Heavy put option activity at strike prices below the current market price suggests increased hedging and bearish positioning, signalling investor caution amid potential volatility. The Hold mojo rating and moderate mojo score of 58.0 reflect a balanced view, advising vigilance amid mixed market signals and sector uncertainties.

Conclusion: Sustained Momentum Amid Balanced Sentiment

Bajaj Auto Ltd.’s performance over the week ending 2 January 2026 highlights a phase of sustained momentum supported by strong technical indicators, active options market positioning, and robust trading volumes. The stock’s gains outpaced the Sensex, reflecting relative strength within the automobile sector. However, the presence of significant put option activity and a cautious mojo rating suggest that investors remain watchful of near-term risks. As the company enters 2026, Bajaj Auto stands at a critical juncture where continued price strength will depend on broader market conditions and sector dynamics. The week’s developments provide valuable insights for investors seeking to navigate the stock’s evolving trajectory.

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