More downside pressure on Bajaj Auto likely: Sharyans Resources

In an interview with ET Now, CK Narayan, President Treasury, Sharyans Resources, shares his views on the outlook of Bajaj Auto.

Would you rate Bajaj Auto as an underperformer?

The whole of the auto pack is in danger of doing that. If you look at each and every one of them, they have not really responded to the sterling numbers, which they announced for December. Whether it is two-wheelers or four-wheelers, you have seen this really superb run in Bajaj, so it is not a surprise that there are people heading for exits to try and lock in their amount of profits which they have. If you look at the charts, you do not have a decent support, even something like a minimal 23% retracement is far away close to Rs 1,300. If you take something even slightly meaningful like 38%, that will put you somewhere around Rs 1,100. So, there is a room on the downside. There is no doubt about that but the point is will it get there or will the value seekers really kick in? I do not really have a view but if you look at it from a chart perspective, Rs 1,300 is the minimum, somewhere around Rs 1,225 is where I would look at the stock. For the moment, since the big boys are out with a sell report or a reduce report, they will see some more downside pressure on the stock.