Shares of Bajaj Finance settled slightly higher on Friday, pausing their downward trend of seven consecutive sessions. The stock crawled 0.27 per cent to close at Rs 5,732.80 over its previous close of Rs 5,717.20. The scrip has lost 9.84 per cent in a month and 12.46 per cent so far this year.
Technical analysts largely remained ‘bearish’ on the counter, suggesting support for Bajaj Finance at Rs 5,500, followed by Rs 5,545, Rs 5,600 and Rs 5,650 levels.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Bajaj Finance has corrected nearly 10 per cent in the last couple of trading weeks and has plunged near the previous swing low. Technically, the counter is placed below all its major moving averages on the daily chart, adding a bearish quotient. However, the support is placed nearby, around Rs 5,600-5,500 odd levels, which is expected to cushion the fall. While on the higher end, a series of resistance can be seen from Rs 6,100-6,300 levels in a comparable period.”
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “At the current juncture, one should wait for some time to go for a buy position. We advise traders to wait and watch this stock. The next support on the counter is placed at Rs 5,600 and then at the 5,100-5,200 levels. Resistance will be at Rs 5,900 level.”
AR Ramachandran from Tips2trades said, “Rs 5,545-5,650 will be a strong support zone for long-term buyers. Strong resistance will be at Rs 6,000.”
Kotak Institutional Equities has assigned a ‘Reduce’ call for Bajaj Finance.
The stock traded lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 31.13. 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 35.71.
Also, shares of Bajaj Finserv finished higher today, extending their winning run for the third straight session. The stock rose 0.45 per cent to close at Rs 1,301.05.
Anand Rathi’s Dongre said, said, “Support is placed at the Rs 1,100 level at the current juncture and resistance at the Rs 1,350-1,400 levels. So, we advise the trader to avoid this stock for a long position until it crosses above the higher end of the resistance level.”
Tips2trades’ Ramachandran said, “Bajaj Finserv has strong support at Rs 1,252 on the daily charts. Bajaj Finserv needs to close above Rs 1,310 to move up to Rs 1,350-1,420 in the near term.”
Kotak has given an ‘Add’ rating on the counter.
Meanwhile, Indian equity benchmarks settled higher for the second straight session, led by gains in banks, financials, technology and metals. The 30-share BSE Sensex pack jumped 355 points or 0.62 per cent to close at 57,990; while the broader NSE Nifty index moved 114 points or 0.67 per cent higher to settle at 17,100.
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