Magistrate Desmond Nair said the state had not made a case that he would flee, or that he had a violent character.
The Paralympic sprinter denies murder, saying he shot Reeva Steenkamp thinking she was an intruder at his home.
The next hearing in the case has been set for 4 June. Bail conditions include a ban on leaving Pretoria.
Mr Nair took almost two hours to deliver his judgement.
He criticised the testimony of lead detective Hilton Botha, saying he had not followed up important leads and had changed his testimony.
But the magistrate also said he had difficulty understanding why Mr Pistorius had opened fire in the way he did.
However, he said Mr Pistorius had "reached out to meet the state's case" and had given a full version of events at an early state.
Ms Steenkamp, 29, was a model and law graduate with a burgeoning television career
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