Bajaj Finance Limited (BAJFINANCE) Stock - Complete Technical Analysis - Sep 24, 2024

Bajaj Finance Stock Analysis: Key Support & Resistance Levels Unveiled

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Today, we're diving into the technical analysis of Bajaj Finance Limited, currently trading at 7,554. The stock has demonstrated robust performance, with a P/E ratio of 35.7 and a book value of 1,159. In terms of momentum, the Average Directional Index (ADX) is showing strength at 41.46, indicating a strong trend, while the Relative Strength Index (RSI) sits at 62.66, suggesting that the stock is approaching overbought territory.

Key support levels to watch are around the 7,493 mark, indicated by the 10-day Exponential Moving Average (EMA), and further down at 7,353, where the 20-day EMA lies. On the resistance front, the first key level is at approximately 7,625, where the Hull Moving Average is positioned, followed by the significant level of 7,736, which aligns with Fibonacci and classic pivot resistances.

Interestingly, we have identified an Inverted Hammer pattern, which is a bullish reversal signal, though less reliable, suggesting potential for upward movement from its recent close of 7,595. Moreover, the Awesome Oscillator indicates strong bullish momentum, while the Williams Percent Range shows the stock is nearing the overbought zone.

Overall, Bajaj Finance is showing bullish characteristics in its price action, but traders should remain cautious due to its elevated RSI readings. Monitoring the support and resistance levels will be crucial for making informed trading decisions moving forward.