Bajaj Finance Limited (BAJFINANCE) Stock - Complete Technical Analysis - Oct 14, 2024

Unlocking Bajaj Finance: Technical Analysis & Key Levels for Traders

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.

Bajaj Finance Limited (BAJFINANCE) Technical Analysis

Bajaj Finance Limited is currently trading at 7,209, showing a decline of approximately 11.65% from its 52-week high of 8,159 reached on October 17, 2023, and up about 16.50% from its 52-week low of 6,187.80 on March 6, 2024.

Support and Resistance Levels:

Key support levels are identified at 7,200 and 7,155, which are also relevant due to recent price action. The stock faces immediate resistance at 7,430, followed by the psychological level of 7,500. If it breaks above this level, it may aim for higher resistance levels around 7,575 and 7,600.

Technical Indicators:

The Average Directional Index (ADX) indicates a moderately strong trend at 27.31, suggesting that momentum could be building. The Relative Strength Index (RSI) is currently at 43.61, hinting that the stock is neither overbought nor oversold, but rather in a neutral zone. The Stochastic %K is also in a low range at 18.21, indicating a potential bullish reversal if it crosses above the signal line.

Moving Averages:

Short-term moving averages (10-day and 20-day) are indicating bearish momentum, as they are positioned below the longer-term moving averages (50-day, 100-day, and 200-day), which reinforces the existing bearish trend. Notably, the stock is trading below the exponential moving average (EMA) levels of 7,342.85 (10-day) and 7,373.33 (20-day), which could serve as immediate resistance.

Chart Patterns:

An inside candle pattern was noted on October 4, 2024, with a parent high of 7,430 and a low of 7,155. This indicates consolidation and potential volatility within this range, where the stock traded for seven consecutive days. A breakout above or below this range may provide clearer direction for traders.

Price Action and Volatility:

Recent trading sessions have shown a pattern of price volatility. The last five days have seen lower lows and highs, signaling a possible downtrend, as evidenced by a notable drop from a high of 7,330 on October 11 to the recent close of 7,208. The Average True Range (ATR) indicates significant volatility, which traders can utilize for setting stop-loss orders and managing risk effectively.

In conclusion, while Bajaj Finance Limited is currently facing resistance at key levels, traders should monitor for potential bullish signals from the Stochastic and RSI indicators, as well as watch for breakouts from established ranges. Strategic positioning around support and resistance levels will be essential for maximizing returns and mitigating risks.