Shares of Bajaj Finance and Bajaj Finserv extended their fall for the third straight session in Friday’s trade. Bajaj Finance fell 2.60 per cent to hit a day low of Rs 5,941 over its previous close of Rs 6,099.85. At today’s low level of Rs 5,941, the stock has declined 10.07 per cent in three sessions. Lower than expected AUM (Assets Under Management) growth led to a decline in shares, analysts said.
AUM grew by 27 per cent to approximately Rs 2,30,850 crore as of December 31, 2022 as compared to Rs 1,81,250 crore in the same period a year ago, the non-banking financial company (NBFC) said in an exchange filing. AUM in Q3 FY23 grew by approximately Rs 12,500 crore, it added.
A total of 62,000 shares changed hands today on BSE, which was more than their two-week average quantity. The turnover on the counter stood at Rs 37.35. The shadow lender commanded a market capitalisation (m-cap) of Rs 3,60,806.45 crore.
Technical charts hinted at a “strong bearish” trend on the counter with support seen at Rs 6,000, followed by Rs 5,800, 5,700 and Rs 5,600.
Jigar S Patel, Senior Manager & Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Since last 4 months, the said counter has been making lower highs and lower lows structure which resulted into 22 per cent cut in price. Over a few trading sessions, we’ve witnessed a massive beating of around 10 per cent along with massive volume, which indicates that the downside is not over yet. Next credible support is seen around Rs 5,600-5,700 where one can go for fresh long. On the indicator front, daily MACD has made a negative cross below the zero line which is hinting more weakness in coming sessions. Last but not least, the counter is trading below all major exponential moving averages which is a matter of big concern.”
One can buy Bajaj Finance near Rs 5,600-5,700 levels only for an upside target of Rs 6,300 with stop loss place at Rs 5,300, Patel added.
Sneha Seth, Derivatives Research Analyst, Angel One Ltd, said, “Considering the recent price action, undoubtedly the trend is strong bearish but looking at the broader picture, it’s not advisable to exit after 20 per cent price decline from a recent high. Traders should stay on the sidelines and it would be interesting to see how this stock behaves around its cluster of support i.e. 6,000-5,800.”
A R Ramachandran from Tips2trades, said, “The stock is starting to get into oversold territory and short sellers are advised to book profits at current levels.”
The stock was last seen trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Bajaj Finance’s 14-day relative strength index (RSI) came at 24.49. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 40.90.
On the other hand, shares of Bajaj Finserv apparently cracked in sync. It slipped 3.10 per cent to touch a day’s low of Rs 1,423.10 against its previous closing of Rs 1,468.55. Considering today’s low level of Rs 1,423.10, the stock has fallen 8.97 per cent in three days.
The trend on the counter looked ‘weak’ and support could be seen at Rs 1,483, followed by Rs 1,380 and 1,360.
Anand Rathi Shares and Stock Brokers’ Jigar S Patel said, “Just like Bajaj Finance, Bajaj Finserv also saw free fall after making double top near Rs 1,820-1,840 zone which resulted into 20 per cent cut in price. Next credible support is seen around Rs 1,360-1,380 where one can go for fresh long.”
One can buy Bajaj Finserv near Rs 1,360-1,380 levels only for an upside target of Rs 1,550, keeping a stop loss at Rs 1,280, Patel added.
Angel One’s Sneha Seth said, “The trend appears to be weak but at the same time on weekly chart 89-EMA is placed around Rs 1,450. One needs to be watchful and see how the stock behaves in next two-three sessions.”
Tips2trades’ Ramachandran said, “Bajaj Finserv has strong support at Rs 1,483 on the daily charts. A close below this level could lead to targets of Rs 1,426-1,339 in the coming days. Strong resistance will be at Rs 1,548.”
Ravi Singh, Vice-President & Head of Research at Share India, said that the recent fall in Bajaj Finserv and Bajaj Finance has seen supportive volume formation on daily charts which indices inherent weakness in the stock.
The stock was last seen trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Bajaj Finserv’s 14-day relative strength index (RSI) came at 28.66. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 258.90.
Meanwhile, Indian equity benchmarks fell sharply in late deals, extending their fall for the third consecutive session as banks, financials and technology stocks dragged.
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