Bajaj Finserv Crosses Rs 1700 Mark: A Technical Breakout After a Period of Consolidation

Bajaj Finserv Ltd. is the holding company for the various financial services businesses under the Bajaj group. It serves millions of customers by providing solutions for asset acquisition through financing, and asset protection through general insurance. Has recently crossed the Rs 1700 mark, signaling a potential bullish breakout after a prolonged period of consolidation. This price action is drawing significant attention from traders and investors, making it an opportune time to analyze the stock’s technicals and understand the implications of this move.

Consolidation Phase and Support Levels

For the past few months, Bajaj Finserv had been trading in a broad range, primarily oscillating between Rs 1,420 and Rs 1,670. This consolidation in the broad range lasted for almost a period of four months.

Bullish Breakout and Volume Surge

The recent price action shows that Bajaj Finserv has broken out of this range, crossing the Rs 1700 mark—a level not seen for quite some time. This breakout is accompanied by a surge in volume, with 255.6K shares traded, suggesting strong buying interest. A breakout with increased volume is often a sign of the beginning of a new uptrend, as it indicates that more traders and investors are participating in the move.

RSI and Momentum Indicators

The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, is currently at 69.63. This is just below the overbought threshold of 70, suggesting that while the stock is approaching overbought conditions, there could still be room for further upside before a potential pullback. The RSI has been trending upwards, reflecting the increasing bullish momentum. The daily MACD is pointing northward while sustaining above its nine period average thus validating positive bias in the stock

What’s Next for Bajaj Finserv

Crossing the Rs 1700 mark is a significant psychological milestone for Bajaj Finserv, and it could pave the way for further gains. Traders should watch for sustained trading above this level, which would confirm the strength of the breakout. However, if the stock fails to hold above Rs 1700, it could indicate a false breakout, potentially leading to a retest of lower support levels around Rs 1,640. 

Conclusion

Bajaj Finserv’s move above Rs 1700 after a long period of consolidation is a positive sign for bulls. The combination of a bullish breakout, increased trading volume, and rising momentum indicators suggest that the stock could continue its upward trajectory in the near term. 

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.