Stock Radar | Bajaj Auto Eyes Reversal After 30% Slide: Is It Time to Buy the Dip?

Bajaj Auto Ltd, a key player in India’s automobile sector, is showing early signs of a trend reversal after a prolonged downtrend. The stock recently bounced back after taking crucial support just below its 100-day moving average (DMA) on the daily charts—an important technical level that often acts as a springboard for medium-term recoveries. This price action suggests growing investor interest at lower levels and increasing potential for an upward trajectory. After witnessing a steep correction of over 30% from its 52-week high of Rs 12,772 recorded on September 27, 2024, Bajaj Auto closed at Rs 8,588 on August 18, 2025, highlighting a significant erosion in market capitalization over the past several months. However, the recent bounce is fueling optimism among technical analysts and traders, many of whom believe that the worst might be over—at least for the medium term. According to market experts, medium-term traders with a high risk appetite could consider accumulating the stock at current levels. With improving momentum indicators and supportive volume trends, a potential upside target of Rs 9,700 could be on the cards in the next 2–4 months, provided the broader market remains stable and auto sector sentiment continues to improve. Technical analysis reveals that Bajaj Auto has managed to stay above its key support zones near Rs 8,400–8,500, forming a short-term base. If the stock maintains its strength and breaks past the immediate resistance at around Rs 9,000–9,100, it could trigger further buying interest, paving the way for a sustained rally. Fundamentally, Bajaj Auto remains a strong contender in the 2- and 3-wheeler segments, both in domestic and export markets. The company’s solid balance sheet, strong cash reserves, robust product pipeline, and continued focus on EV transition have been seen as long-term positives by analysts, even amid cyclical slowdowns and margin pressures. Moreover, upcoming festive demand, easing input costs, and recent price hikes across key models could support revenue growth and margin expansion in the coming quarters. Any signs of revival in rural demand or pickup in exports could act as additional catalysts for price recovery. That said, investors should remain cautious of macroeconomic headwinds, global demand uncertainty, and currency fluctuations that could impact export performance. Stop-losses near the recent lows of Rs 8,400 are recommended to manage downside risk. In summary, Bajaj Auto Ltd appears to be at a potential inflection point. While the stock has endured a significant correction, current technical and fundamental cues suggest it may be an opportune time for high-conviction investors to "buy the dip" and ride the potential medium-term rebound.