Bajaj Corp turns volatile amid Q4 result, price at crucial level

Bajaj Corp, the FMCG company engaged in personal care products, specifically hair oils, posted its Q4FY18 results. The company posted 5.22 per cent YoY rise in PAT to Rs. 55.41 crore. The total income too came in at Rs. 222.46 crore as against Rs 206.86 crore in Q4FY17. FY18 posted marginal 2.8 per cent total income growth while 2.1 per cent PAT de-growth. 6.9 per cent volume growth in the domestic market offset the underperformance in international business.

The stock of Bajaj Corp, a BSE 500 company, opened on a positive note, hit above previous high, but retreated and gave a sharp intraday fall after the results were announced. The stock ended 5.5 per cent lower than previous close.

Technically, the stock of Bajaj Corp gave a kind of Inverse Head and Shoulders pattern breakout at 507 levels on Wednesday, but it retreated in the form of a pullback up to its 200-days EMA level at 454. The retreat was big enough supported by volume spurt and RSI negative crossover. The stock has been taking multiple supports at its 200-days EMA line. And hence it’s a crucial level for the stock. If its hits lower than 454-447, then it can plunge some more. However, if it surges above 506-510, we may see some more upside, may be above its all time high level.