Bajaj Auto - this two wheeler major is in a major uptrend and has managed to close near 850 levels on the last trading day of the week. The scrip was recommended last week and has returned superlative returns to our investors / traders alike ( click here to view previous editions ). The counter is showing tremendous relative strength and has not violated the 30 day SMA support which should be taken as the immediate stop loss. Fundamental reasons are also in favour of the stock as good monsoons, export potential and new launches are boosting the topline / bottomline figures. We maintain a buy.

Your call of action - 

• Investors / cash segment players - Delivery based buying is recommended at the 820 - 830 levels and a stop-loss be maintained at the 795 levels. Expect a profit target of 880 / 890 in the near term in a firm market. Once the price starts rallying after long entry, keep modifying the stop loss levels higher to protect even the notional gains

• Aggressive F&O traders - Buy the October futures at the 840 levels and hold with a stop loss at the 822 levels. Your price target is the 870 - 880 levels in the immediate term. Higher levels are likely in a firm market by results time. Options players must abstain as the counter lacks liquidity

• Fixed income strategy - N/a.

• Derivatives contract size - Market lot = 800 shares / Margin approx Rs 1,05,000 ( margins are subject to change daily )