Bajaj Housing Finance (NSE: BAJAJHFL) share price traded downward on Monday, going at Rs 136.90 after dropping by 1.6 percent at the time of writing. The Bajaj Group subsidiary will release its earnings results for the quarter ending September on Monday, 21 October, and analysts expect revenues of 8.56 billion rupee and earnings per share (EPS) of Rs 2.30.
The stock has been bearish for the most part since it listed in mid-Septembers, and recorded losses in each of the last two weeks. Bajaj Housing Finance share price trades below the 20-Exponential Moving Average (EMA) levels, underlining the current bearish momentum. The company was one of the most successful debuts on the stock markets, listing at Rs 150, which was more than 100 percent of its IPO price of Rs 70.
However, Bajaj Housing Finance share price has since declined below the initial listing price, bringing selling pressure on the stock. While the IPO investors still remain in profit, a lower-than-expected quarterly earnings could raise the downward pressure on the stock this week. Conversely, the recent decline in the share price provides a good entry point for investors, which could serve as a reversal point from the current correction.
The momentum on Bajaj Housing Finance share price currently favours the sellers to extend their control, if resistance persists at 137.25. The downward momentum will likely find initial support at 136.10, but an extended bearishness could break below that level to test the second support at 135.40.
On the other hand, a move above 137.25 will favour the buyers to take control. In that case, the first resistance will likely come at 137.96. However, a stronger upward momentum could break above that level and render the upside narrative invalid. Also, the momentum could take the price to the second barrier at 138.45.
This post was last modified on Oct 21, 2024, 10:37 BST 10:37