Bajaj Finance Ltd: A financial powerhouse on the rise

Bajaj Finance, primarily engaged in lending, boasts a diversified portfolio catering to retail, SME, and commercial customers across urban and rural India. Additionally, it accepts public and corporate deposits while offering a wide array of financial services. It operates as a non-banking financial company (NBFC), specializing in consumer finance, SME finance, commercial lending, and investment services. Established on March 25, 1987, the company is headquartered in Pune, India.

A thorough analysis of Bajaj Finance Ltd.’s recent stock performance reveals a compelling narrative. In mid-October 2023, the stock reached a high of Rs 8,050 level, initiating a retracement of the previous rally that began in May 2020 at the Rs 1,783 level. This retracement extended for over 100 weeks, finding support at the 38.2% Fibonacci retracement level.

In a recent trading session, a surge in buying interest propelled the stock on an uncharted trajectory, closing above key short-term daily moving averages (DMA). Notably, a significant breakout trendline has emerged, connecting the high point of the week that began on October 18, 2023 (Rs 8,050 level) with the peak of the week starting on July 03, 2023 (Rs 7,999.90 level). This formation signifies a technical continuation price pattern spanning over a 100-week period.

During today’s trading session, the stock experienced an upward movement of over 4%, closing around a lifetime high at Rs 8168.55, above the aforementioned breakout trendline, confirming the breakout. Interestingly, the 14-day period RSI placed in the super bullish zone at 73 level instilling optimism among investors.

With its sights set on a potential target of Rs 10,200 level, representing an approximate gain of 25% from the breakout threshold at the Rs 8,150 level, this scenario presents an enticing opportunity for both swing traders and long-term investors closely monitoring Bajaj Finance Ltd.’s performance. The company’s trajectory offers a promising outlook, brimming with potential for further upward gains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.