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Bajaj Finance Share Price Prediction: An Upside Breakout In The Making

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Written By: Michael Abadha
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    Summary:
  • Bajaj Finance has printed out mostly red candlesticks in the last week, but its fundamentals and key moving averages call for the upside.

Bajaj Finance share price snapped a four-session losing streak on Wednesday, gaining 0.6 percent in the intraday session to trade at Rs 7,605. The stock has had a rough time at the stock market in the last week, but is up by 12 percent on the monthly chart. Bajaj Finance is part of the Bajaj Group, which also comprises of Bajaj Finserve and the recently-listed Bajaj Housing Finance.

The non-banking financial services company engages in auto financing, SME lending, gold loans, personal loans, rural loans and commercial loans. Its clientele include comercial customers, retail and SMEs. It has grown to be among India’s largest lenders, with more than 83 million customers to date.

Strong bottomline and above key moving averages

Bajaj Finance (NSE: BAJFINANCE) manages assets worth over Rs 4,700 billion, and its revenue more than doubled in the last two years, growing at a Compounded Annual Growth Rate (CAGR) of 15.8 percent. The company recently raised $371 million (Rs 30.97 billlion) through the reissuance of multiple tenor bonds with expiries in 2029 and 2034 and yields of 7.93% and 7.98% respectively.

The company’s bottomline is stable and continues to offers good proposition for investors. In addition, Bajaj Finance share price is above key moving averages, the 20-EMA, 50-EMA, 100-EMA and 200-EMA. In addition, the 20-EMA (Rs 7,377) is above the 50-EMA (Rs 7,155), underlining strong bullish control.

Bajaj Finance share price today

Bajaj Finance has pivoted at 7,600, and the buyers will likely continue being in control if the share price stays above that level. The upside could encounter the first hurdle at 7,653, but a stronger push by the sellers could break above that level to test 7,700.

Alternatively, moving below 7,600 will favour the sellers to take control . In that case, initial support will likely be at 7,550. However, if the downside momentum strengthens, the share price could break below that level to invalidate the upside narrative and potentially test 7,500.

This post was last modified on Sep 25, 2024, 10:03 BST 10:03

Written By: Michael Abadha

Michael is a self-taught financial markets analyst, who specializes in analysis of equities, forex and crypto markets. He draws his inspiration from the fact that markets provide an interface through which the world interacts in search of a better tomorrow.

Published by
Written By: Michael Abadha