Bajaj Auto Ltd has shown signs of technical recovery after successfully testing its 100-day moving average on daily charts, indicating that bullish participants are making efforts to regain control of the stock's price movement. The leading two- and three-wheeler manufacturer's recent price action suggests a potential turnaround from its earlier decline.

Technical Analysis and Price Movement

The stock demonstrated significant momentum earlier, reaching a notable high before experiencing a pullback. The recent testing of key technical levels has provided insights into the stock's current positioning.

Expert Recommendations and Price Targets

Technical analysts suggest that the stock's ability to hold above its 100-day moving average presents opportunities for traders with specific risk appetites. Short to medium-term traders are being advised to consider buying positions based on the current technical setup.

Market Context and Technical Recovery

The stock's recent performance reflects the broader dynamics within the automobile sector, particularly in the two- and three-wheeler segment where Bajaj Auto maintains its position as a key player. The technical recovery from the 100-day moving average support suggests that institutional and retail participants may be viewing current levels as attractive entry points.

The failure to maintain momentum after reaching ₹9,471.00 in early September had initially raised concerns about the stock's near-term trajectory. However, the subsequent successful test of the 100-day moving average has provided technical analysts with renewed confidence in the stock's potential for upward movement.

Trading Outlook

The current technical setup presents what experts describe as a favorable risk-reward scenario for traders willing to take positions with a 2-4 month investment horizon. The reclaiming of crucial moving averages after the recent fall indicates that the stock may have found its technical footing, potentially setting the stage for a move toward higher price levels in the coming months.

Bajaj Auto Limited has received a penalty order of ₹17.74 lakh from tax authorities in Pune related to GST compliance issues for the financial year 2021-22. The company disclosed this development through a regulatory filing under the Securities and Exchange Board of India listing regulations.

Penalty Details and Background

The penalty order was issued by the Deputy Commissioner of State Tax, Pune, under Section 73(9) of the Maharashtra GST Act, 2017.

Nature of Violation

The penalty has been levied due to excess Input Tax Credit availed as compared to Form GSTR-2B for the financial year 2021-22. This indicates a discrepancy between the input tax credit claimed by the company and what was reflected in the auto-populated GSTR-2B form, which contains details of inward supplies.

Company's Response and Impact Assessment

Bajaj Auto has stated that the order is appealable and the company plans to take appropriate legal remedies as per law. The automotive manufacturer has assessed that there will be no material financial impact on the company due to this penalty order.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires listed companies to inform stock exchanges about material events and developments that could impact the company.