Bajaj Electricals Moves In A Sideways Ran

A break above ₹440 will alter the downtrend and take the stock to ₹500 over the medium term

- Yoganand D

Here are answers to readers’ queries on the performance of their stock holdings.

I am a long-term investor and have purchased shares in Bajaj Electricals and KNR Constructions. What is the technical outlook for these two companies?

Ramprasad V

Bajaj Electricals (₹383.4): After a strong rally in 2017 and early 2018, the stock of Bajaj Electricals registered a new high at ₹706 in April 2018. The stock subsequently changed direction and has been on an intermediate-term downtrend since then. The stock tumbled sharply this July breaking below a key longterm support in the band between ₹425 and ₹440. However, it found support at the next crucial long-term base at ₹340 in late July and has been in a medium-term sideways movement in the ₹340-425 range. The stock can continue to move sideways for a while. Investors with a longterm perspective can stay invested with a stop-loss at ₹315.