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I have bought Bajaj Finance shares at ₹2,380. What is the technical outlook?
Anand Basapa
Bajaj Finance (₹5,610.7) : Since the stock of Bajaj Finance bottomed out at around ₹1,783 in May 2020, it has been in a long-term uptrend. Last November, stock conclusively breached a key resistance at ₹3,600 and continued to trend upwards. It recorded a 52-week high at ₹5,921 in late February and began to decline. But it found support at ₹4,400 levels in mid-April and bounced up. It has been in a short-term uptrend since then.
The stock breached a key resistance at ₹5,200 as well as the 50-day moving average and continued to trend upwards in late April. But it now faces a key resistance ahead at ₹5,820. An emphatic break-out of this level is needed to reinforce the bullish momentum and take the stock northwards to ₹6,000 and then to ₹6,500 in the long run. On the downside, if the stock falls below the immediate base level of ₹5,200, it can decline to ₹4,800 and then to ₹4,400 levels over the short to medium term. You can remain invested with a stop-loss at ₹4,350 levels. But a strong plunge below ₹4,400 will alter the medium-term uptrend and pull the stock lower to ₹3,600 levels.
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