Key Events This Week
22 Jun: Robust trading activity with Rs.10,198.30 close (+1.32%)
23 Jun: Upgraded to Strong Buy; stock declines to Rs.10,015.45 (-1.79%)
24 Jun: Heavy put option activity amid bearish sentiment; price falls to Rs.9,749.35 (-2.66%)
25 Jun: Slight recovery to Rs.9,842.00 (+0.95%)
22 June 2026: Robust Trading Activity and Sector-Aligned Gains
Bajaj Auto Ltd. began the week on a positive note, closing at Rs.10,198.30, up 1.32% from the previous close. The stock recorded significant value turnover with a traded volume of 5,16,413 shares and a traded value of ₹525.79 crores, highlighting strong liquidity and institutional interest. This performance outpaced the Sensex’s 0.46% gain and the automobile sector’s 0.92% rise, signalling relative strength within its peer group.
Technically, the stock traded above its 5-day, 50-day, 100-day, and 200-day moving averages, indicating sustained upward momentum. However, it was slightly below the 20-day moving average, suggesting some short-term consolidation. Delivery volumes surged by 224.32% compared to the five-day average, reflecting strong investor conviction to hold the stock.
23 June 2026: Upgrade to Strong Buy Amid Mixed Price Reaction
Despite the upgrade from ‘Buy’ to ‘Strong Buy’ by MarketsMOJO on 22 June, Bajaj Auto’s stock price declined 1.79% to close at Rs.10,015.45 on 23 June. The upgrade was driven by robust fundamentals including a high Return on Equity of 22.84%, strong sales and profit growth rates of 17.79% and 21.63% respectively, and a conservative debt-to-equity ratio of 0.06. The company’s market capitalisation stood at ₹2,85,040 crores, making it a dominant player in the two- and three-wheeler segment.
Technical indicators showed a shift to a bullish momentum with daily moving averages supporting upward price trends. However, some weekly indicators such as MACD and RSI presented bearish signals, reflecting short-term caution. The stock’s year-to-date return of 9.15% significantly outperformed the Sensex’s negative 9.54%, underscoring its resilience despite the price dip on the day.
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24 June 2026: Heavy Put Option Activity Signals Bearish Sentiment
The stock faced significant selling pressure on 24 June, falling 2.66% to close at Rs.9,749.35. This decline coincided with heavy put option activity at strike prices of Rs.9,700 and Rs.9,500, with combined turnover exceeding ₹68 crores and open interest above 2,600 contracts. The elevated put volumes suggest increased hedging and bearish positioning ahead of the 30 June expiry.
Technically, Bajaj Auto traded below its 5-day, 20-day, and 50-day moving averages but remained above the 100-day and 200-day averages, indicating a short-term correction within a longer-term uptrend. Delivery volumes increased by 32.64% compared to the five-day average, reflecting heightened investor activity amid volatility. The stock underperformed both the Sensex and the automobile sector on the day, signalling relative weakness.
25 June 2026: Modest Recovery Amid Lingering Caution
On 25 June, Bajaj Auto rebounded slightly, gaining 0.95% to close at Rs.9,842.00. This recovery followed two consecutive days of sharp declines, suggesting some bargain hunting or short-term technical support near current levels. However, the stock remained below the week’s opening price and key short-term moving averages, indicating that the correction phase may not yet be over.
Mixed technical signals persisted, with weekly MACD and RSI remaining bearish while monthly indicators showed neutral to mildly bullish trends. The stock’s year-to-date return of 7.20% still outperformed the Sensex’s negative 10.58%, reinforcing its relative strength despite recent volatility.
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Daily Price Comparison: Bajaj Auto Ltd. vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-06-22 | Rs.10,198.30 | +1.32% | 36,342.26 | +0.46% |
| 2026-06-23 | Rs.10,015.45 | -1.79% | 35,959.97 | -1.05% |
| 2026-06-24 | Rs.9,749.35 | -2.66% | 36,151.68 | +0.53% |
| 2026-06-25 | Rs.9,842.00 | +0.95% | 36,133.32 | -0.05% |
Key Takeaways
Positive Signals: Bajaj Auto’s upgrade to a ‘Strong Buy’ rating reflects robust fundamentals including strong profitability, conservative leverage, and impressive sales and profit growth. The stock’s liquidity and institutional interest remain high, supported by significant delivery volumes and value turnover. Long-term returns continue to outperform the Sensex substantially, underscoring the company’s resilience and growth potential.
Cautionary Signals: Despite the fundamental strength, the stock experienced a 2.22% decline over the week, underperforming the benchmark index. Technical momentum showed mixed signals with weekly MACD and RSI indicating short-term bearishness. Heavy put option activity at strikes below the current price signals increased hedging and bearish sentiment among investors, suggesting potential near-term volatility. The stock’s price trading below key short-term moving averages further supports a cautious outlook.
Conclusion
Bajaj Auto Ltd.’s week was characterised by a juxtaposition of strong fundamental upgrades and technical caution. The MarketsMOJO upgrade to ‘Strong Buy’ highlights the company’s solid financial health and growth trajectory, while the stock’s price action and options market activity reveal investor concerns about short-term downside risks. The stock’s relative outperformance over longer horizons remains a positive anchor, but near-term volatility is likely as expiry approaches and technical indicators remain mixed.
Investors should balance the medium- to long-term growth prospects with prudent risk management, closely monitoring technical momentum and option market developments. Bajaj Auto’s large-cap stature and sector leadership continue to provide a strong foundation amid evolving market dynamics.
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