Bajaj Auto Ltd. Technical Momentum Shifts to Bullish Amid Strong Market Returns

Technical Trend Overview and Price Action

The stock closed at ₹9,542.00 on 14 Jan 2026, marking a modest intraday gain of 0.40% from the previous close of ₹9,504.35. The day’s trading range was between ₹9,457.60 and ₹9,574.00, with the current price hovering close to its 52-week high of ₹9,883.30, well above the 52-week low of ₹7,088.25. This proximity to the upper band of its annual range reflects sustained buying interest and resilience amid broader market fluctuations.

On a relative basis, Bajaj Auto has outperformed the Sensex significantly over the medium to long term. The stock’s one-year return stands at 10.97%, surpassing the Sensex’s 9.56%. More impressively, over three and five years, Bajaj Auto has delivered returns of 164.72% and 164.93% respectively, compared to the Sensex’s 38.78% and 68.97%. The decade-long return of 303.64% further underscores the company’s robust growth trajectory and market leadership within the automobile sector.

MACD and Momentum Indicators Signal Bullish Shift

The Moving Average Convergence Divergence (MACD) indicator presents a mixed but predominantly positive picture. On the weekly chart, MACD is firmly bullish, indicating upward momentum in the near term. However, the monthly MACD remains mildly bearish, suggesting some caution for longer-term investors as the broader trend may still be consolidating. This divergence highlights a potential acceleration phase in the stock’s price action, where short-term momentum is gaining strength ahead of a possible longer-term trend confirmation.

Complementing MACD, the Know Sure Thing (KST) oscillator is bullish on the weekly timeframe but mildly bearish monthly, mirroring the MACD’s signals. This alignment reinforces the notion of a near-term upswing while signalling that investors should monitor monthly charts for confirmation of sustained strength.

Moving Averages and Bollinger Bands Confirm Uptrend

Daily moving averages have turned decisively bullish, with the stock price trading above key averages such as the 50-day and 200-day moving averages. This crossover and sustained price positioning above these averages typically indicate a strong uptrend and attract momentum-driven buying.

Bollinger Bands further support this positive outlook. On the weekly scale, the bands are mildly bullish, suggesting moderate volatility with upward bias. On the monthly scale, the bands are bullish, indicating that the stock is trending higher with expanding volatility, a classic hallmark of a healthy uptrend.

RSI and Volume-Based Indicators Show Neutral to Mildly Bullish Signals

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, indicating that the stock is neither overbought nor oversold. This neutral stance suggests room for further price appreciation without immediate risk of a sharp correction due to overextension.

On-Balance Volume (OBV) presents a mildly bullish signal on the weekly timeframe, implying that volume trends are supporting price gains in the short term. However, the monthly OBV is mildly bearish, signalling that longer-term accumulation may be less robust and warrants monitoring for any shifts in buying interest.

Dow Theory and Market Sentiment

According to Dow Theory assessments, the weekly and monthly trends are mildly bullish, reinforcing the technical narrative of an emerging uptrend. This suggests that the broader market sentiment towards Bajaj Auto is improving, with investors gradually gaining confidence in the stock’s prospects.

Mojo Score Upgrade Reflects Improved Technical and Market Position

MarketsMOJO has upgraded Bajaj Auto’s Mojo Grade from Sell to Hold as of 22 Dec 2025, reflecting the recent technical improvements and stabilising fundamentals. The current Mojo Score stands at 65.0, indicating a moderate buy sentiment tempered by some caution. The Market Cap Grade remains at 1, consistent with the company’s large-cap stature and liquidity profile.

This upgrade aligns with the technical trend shift from mildly bullish to bullish, signalling that the stock is entering a phase of stronger momentum and potential price appreciation.

Investor Implications and Outlook

For investors, the current technical landscape of Bajaj Auto suggests a favourable entry point or an opportunity to add to existing positions. The bullish daily moving averages and weekly MACD momentum indicate that short-term price appreciation is likely to continue, supported by strong volume trends and positive market sentiment.

However, the mildly bearish monthly MACD and OBV advise caution for long-term investors, signalling that the stock may be undergoing a consolidation phase at higher levels. Monitoring monthly charts and key support levels around ₹9,000 will be crucial to gauge the sustainability of the uptrend.

Comparatively, Bajaj Auto’s consistent outperformance against the Sensex over one, three, five, and ten-year periods highlights its resilience and growth potential within the automobile sector. This track record, combined with improving technicals, makes it a compelling consideration for portfolios seeking exposure to quality large-cap auto stocks.

Conclusion

Bajaj Auto Ltd. is currently exhibiting a clear shift in technical momentum from mildly bullish to bullish, underpinned by strong daily moving averages, weekly MACD, and supportive Bollinger Bands. While some monthly indicators remain cautious, the overall technical and price action signals point towards a strengthening uptrend. The recent upgrade in Mojo Grade to Hold further validates this positive outlook. Investors should weigh these technical signals alongside fundamental factors and broader market conditions to make informed decisions.

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