Falling Wedge Breakout in Bajaj Consumer Ltd
Our Focus
In our last write-up, we discussed the fundamentals and technical of SULA Vineyards Ltd & share price worked well as expected. Recently, we found one more company that has given a breakout on the weekly chart, and currently share price is at attractive levels i.e. Bajaj Consumer Ltd. If we look at the company fundamentals are strong and products are demanding.
Market Sentiment Analysis
The market is heading towards 22500 and not ready to come down. Nowadays, the market showing a fast recovery after profit booking. The Indian market sentiments are bullish and global also. The Indian Government election is coming and everyone is saying “Ab Ki Baar Fir Modi Sarkar”. However, as an investor, I need correction in the market to enter good stocks at reasonable levels.
We are bullish on the market and there will be a good opportunity near this support level with candle confirmation. Let’s discuss the company fundamentals and chart.
Company Business Module
Bajaj Consumer is one of the leading and largest FMCG producers and sellers in India. They have key products in personal care, toiletries, and cosmetics. They have popular brands like Bajaj Almond Hair Oil, 100% pure coconut oil, Brahmi Amla, etc. The company has a global presence with SAARC, Gulf and Middle East, Asian, and African regions.
Technical Analysis
If we look at the Nifty FMCG index then as per long-term view it is bullish. However, recently we have seen profit booking from all time high. With this sector profit booking, Bajaj Consumer also showed a correction from 258 to 196. After this correction share price was bottom and given a big breakout on a weekly chart. That is the confirmation of Double Bottom as well as the Falling Wedge breakout.
What next?
The share price is trading around 230 now and the next resistance levels are 260/270, once it crosses these levels then we are expecting big up moves. Immediate support is around 220/200. Our view is bullish.
Fundamental Analysis
- The products are demanding and demand is increasing.
- The company has negligible debt.
- FIIs & DIIs have good holdings.
- ROE & ROCE are positive.
Why Share Price Can Go Up?
The business module and product of the company are strong and demanding. The company is profit making and the share price has given a breakout on the weekly chart.
Social Media Presence
YouTube - Click Here Linkedin - Click Here
Twitter - Click Here Instagram - Click Here
Facebook - Click Here Intraday Update - Click Here
Our Courses - Level-1 | Level-2 | Level-3
Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. Readers are advised to consult their Investment advisor before making any decisions based on the above write-up.
