Bajaj Auto, Wipro, Bandhan Bk: Trading strategies in stocks post Q2 results

Charts suggest that Bajaj Auto can potentially rally up to 7 per cent from present levels, while Bajaj Finance, Bandhan Bank and Wipro can tumble up to 21 per cent.

The Q2 earnings season is slowly and steadily picking up pace. Major companies from the IT sector have already finished announcing their Q2 results; the focus now shifts to auto and banking firms.

Even as the broader market swings to the tune of global peers amidst the ongoing conflict in the Middle-East, stocks of the companies that post results remain on investors radar, and react accordingly based on the reported numbers.

Here's a quick chart check on select stocks post Q2 results:

Bajaj Auto

Current Price: Rs 5,368

Upside Potential: 6.7%

The stock is trading with a positive bias on the daily chart as it trades substantially above its key moving averages. Since September the stock has consistently found support around its 20-DMA, which presently stands at Rs 5,052.

In the last two years, the stock has doubled from levels of Rs 2,600 levels, after it witnessed 'Golden Crossover' on the weekly scale. Further, the stock has witnessed a significant trend line breakout on the monthly scale in August 2023.

The monthly chart suggests that the bias is likely to remain bullish as long as the stock sustains above the trend line breakout, which now stands at Rs 4,775. Post such a significant breakout, the stock tends to rally 15-20 per cent. 

Post today's gain, the stock is seen within striking distance of the 15 per cent upside target, which stands at Rs 5,500-level, whereas a 20 per cent rally indicates an upside target of Rs 5,730. CLICK HERE FOR THE CHART

Bajaj Finance

Current Price: Rs 7,810

Potential Downside: 5.5%

With the back-to-back losses in the two trading sessions post Q2 results, Bajaj Finance has slipped below its 20-DMA (Daily Moving Average) which stands at Rs 7,900.

Key momentum oscillators on the daily chart are in favour of the bears, with 14-day RSI (Relative Strength Index) Stochastic Slow and MACD (Moving Average Convergence-Divergence) clearly negative. Hence, the stock is likely to underperform in the near term.

Immediate resistance for the stock on the upside now stands at Rs 7,900; whereas, on the downside the stock can slip towards the 50-DMA which stands at Rs 7,500, or slightly below towards its 100-DMA at Rs 7,385. CLICK HERE FOR THE CHART

Wipro

Current Price: Rs 394

Downside Potential: 21%

Wipro has been trading with a negative bias since late September after the stock dipped below its 20-DMA. With today's sharp fall, the stock has plunged below its 200-DMA for the first time since June-end. 

Further, the 20-DMA at Rs 412, now seems on course to dip below the 100-DMA which stands at Rs 407.50. The 20-DMA is already below the 50-DMA, hence, the stock is likely to remain sluggish and face considerable resistance in case of an upturn.

For now, the focus should be on the 200-DMA which the stock is testing today at Rs 397, below which the stock may test support around its recent low at Rs 575-odd levels. Break and sustained trade below the 200-DMA can also trigger a fall towards Rs 310, suggests the monthly chart. CLICK HERE FOR THE CHART

IndusInd Bank:

Current Price: Rs 1,455

Bias: Range-bound

Shares of IndusInd Bank have been trading in a narrow band of Rs 1,360 - Rs 1,470 for more than three months now, since July 2023. Presently, the stock is seen trading near the higher-end of the existing trading range.

Momentum oscillators on the daily and weekly charts are mixed, thus indicating indecisiveness at the counter. Failure to clear the near-term hurdle at Rs 1,470 could see the stock slip back towards the lower trading range. 

Further, the weekly chart suggests that the stock has successfully managed to sustain above its 20-WMA since early May 2023. The 20-wMA currently stands at Rs 1,400. Break and weekly close below the same, can dismantle the existing range-bound trade in favour of a downside. CLICK HERE FOR THE CHART

Bandhan Bank

Current Price: Rs 231

Downside Potential: 8%

Following the sharp fall in the last five trading sessions, wherein the stock shed as much as 8.5 per cent, Bandhan Bank is now seen trading below all its key moving averages. 

However, the price-to-moving averages action remains favourable, and select momentum oscillators have entered oversold zone on the daily chart. The 200-DMA at Rs 233-odd level holds for the key for the stock in the near-term.

Break and sustained trade below the same, can dismantle the present positive structure for the stock. On the positive front, in case the stock manages to hold the 200-DMA, it can attempt a pullback rally towards the 100- and 50-DMAs, which stand at Rs 238 and Rs 240 in the very near term.

Having said that, the outlook for the stock on the broader time-frame remains negative. Sustained trade below Rs 231 level is likely to trigger a fall towards Rs 212 indicates the weekly chart. CLICK HERE FOR THE CHART