Bajaj Auto Ltd. Dips 0.77% Despite Technical Upgrades and 52-Week High

2 February 2026: Week Opens on a Weak Note

Bajaj Auto Ltd began the week at Rs.9,494.20, down 1.03% from the previous close, mirroring the Sensex’s decline of 1.03% to 35,814.09. The stock’s volume was moderate at 6,687 shares, reflecting cautious investor sentiment amid broader market weakness. The automobile sector was under pressure, and Bajaj Auto’s performance aligned with this trend, setting a subdued tone for the week’s trading.

3 February 2026: New 52-Week High and Mojo Upgrade

On 3 February, Bajaj Auto Ltd surged to a new 52-week high of Rs.9,900, marking a 4.27% intraday gain from the previous day’s close. The stock closed at Rs.9,592.30, up 1.03% on the day, outperforming the Sensex’s 2.63% gain which closed at 36,755.96. This rally was driven by a significant upgrade from MarketsMOJO, which raised the stock’s rating from Hold to Buy, reflecting improved financial and technical metrics.

The upgrade was underpinned by strong fundamentals, including a healthy Return on Equity of 23.08%, a conservative debt-to-equity ratio of 0.08, and record quarterly sales and profits reported in the December 2025 quarter. Technical indicators also turned bullish, with the stock trading above all key moving averages and a positive MACD signal on weekly and monthly charts.

4 February 2026: Technical Momentum Shifts Bullish

The bullish sentiment continued on 4 February as Bajaj Auto’s technical indicators confirmed a shift from mildly bullish to bullish momentum. The stock closed at Rs.9,634.70, up 0.44%, while the Sensex gained a modest 0.37% to 36,890.21. Key momentum indicators such as MACD on weekly and monthly charts remained positive, supported by daily moving averages that reinforced the uptrend.

Relative Strength Index (RSI) levels remained neutral, indicating room for further gains without overbought conditions. Bollinger Bands suggested mild bullishness, while the Know Sure Thing (KST) indicator was bullish on the weekly chart but mildly bearish monthly, signalling some caution for longer-term momentum. On-Balance Volume (OBV) trends were mildly bullish on the weekly scale, supporting the price rise.

This technical strength was consistent with the MarketsMOJO Mojo Score of 74.0 and the upgraded Buy rating, reflecting growing investor confidence in the stock’s near-term prospects.

5 February 2026: Consolidation Amid Market Volatility

Bajaj Auto’s price movement on 5 February was largely flat, closing at Rs.9,639.00, a marginal increase of 0.04%. The Sensex declined 0.53% to 36,695.11, reflecting broader market volatility. Trading volume remained subdued at 3,909 shares, indicating a consolidation phase following the prior days’ gains. The stock maintained its position above key moving averages, preserving the bullish technical setup despite the lack of significant price movement.

6 February 2026: Week Ends with a Decline

The week concluded on a weaker note for Bajaj Auto, with the stock closing at Rs.9,518.60, down 1.25% on the day and 0.77% for the week. This contrasted with the Sensex’s modest gain of 0.10% to 36,730.20. The decline followed a day of low volume at 3,149 shares and may reflect profit-taking after the recent rally and technical strength. Despite this, the stock remains well-positioned above its key moving averages, and the overall technical outlook remains bullish.

Key Takeaways

Positive Signals: Bajaj Auto’s attainment of a new 52-week high at Rs.9,900 on 3 February was a highlight, supported by a MarketsMOJO upgrade to Buy and a shift to bullish technical momentum. The stock’s position above all major moving averages and positive MACD readings on weekly and monthly charts indicate sustained upward momentum. The company’s strong fundamentals, including a robust ROE of 23.08%, low leverage, and record quarterly profits, underpin the positive outlook.

Cautionary Notes: Despite the technical strength, the stock closed the week down 0.77%, underperforming the Sensex’s 1.51% gain. Rising interest expenses and a dip in ROCE to 22.46% warrant monitoring, as does the mildly bearish monthly KST indicator and mixed volume trends. The premium valuation, with an enterprise value to capital employed ratio of 5.9, suggests limited margin for valuation expansion. Investors should remain alert to sectoral headwinds and macroeconomic factors that could impact performance.

Conclusion

Bajaj Auto Ltd’s week was characterised by a strong technical rally midweek, culminating in a new 52-week high and an upgrade to a Buy rating by MarketsMOJO. The stock demonstrated resilience amid a volatile market, supported by solid fundamentals and improving technical momentum. However, the week ended with a modest decline, reflecting profit-taking and broader market dynamics. The company’s leadership in the two- and three-wheeler segment, combined with its financial strength, positions it well for medium- to long-term performance, though investors should watch interest costs and valuation levels closely.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →