Bajaj Finserv Limited (BAJAJFINSV) Stock - Complete Technical Analysis - Oct 14, 2024

Bajaj Finserv Technical Analysis: Key Support and Resistance Levels Explained

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. As of the latest trading session, Bajaj Finserv is priced at 1,867.20, which is approximately 8.02% below its 52-week high of 2,029.90, reached on September 27, 2024. Conversely, it is trading 31.58% above its 52-week low of 1,419.05, recorded on June 4, 2024. This current price movement suggests that the stock is in a corrective phase after reaching a recent high.

Support and Resistance Levels

Support Levels:

The immediate support level is around 1,830.83 (Classic Pivot S1), followed by 1,688.27 (Classic Pivot S2) and 1,446.17 (Classic Pivot S3).

Resistance Levels:

On the upside, the primary resistance is at 1,930.37 (Classic Pivot Point), with further resistance at 2,072.93 (Classic Pivot R1) and 2,172.47 (Classic Pivot R2).

Chart Patterns

Recent candlestick formations indicate two significant bearish patterns:

Bearish Engulfing: This pattern formed with yesterday's open at 1,875.95 and a close at 1,876.40, indicating a potential reversal in momentum.

Evening Star: Another bearish reversal pattern was identified, which often signals the end of an uptrend and a possible downturn.

Additionally, an Inside Candle pattern was noted on October 8, 2024, where the stock traded within the range of 1,893.95 (high) and 1,833.10 (low) for five consecutive days. This pattern often precedes a breakout or breakdown.

Technical Indicators

MACD is currently positive, suggesting bullish momentum, while the RSI stands around 50.17, indicating neutrality in momentumneither overbought nor oversold.

The Stochastic RSI is low at 16.04, pointing toward oversold conditions, potentially signaling a reversal to the upside in the near term.

The Average Directional Index (ADX) is at 38.58, indicating a strong trend but, in this case, bearish.

Momentum is negative at -143.5, which indicates a weakening trend.

Moving Averages

The 10-day Exponential Moving Average (EMA) is at 1,886.09, while the 50-day EMA is at 1,809.78, suggesting short-term bearish pressure.

The stock is trading below the 200-day EMA of 1,672.63, confirming the bearish trend over a longer timeframe.

Conclusion

Bajaj Finserv Limited is currently experiencing bearish pressures indicated by recent price patterns and technical indicators. Traders should watch for potential rebounds near support levels, particularly around 1,830.83, while the resistance at 1,930.37 will be critical to overcoming for a bullish reversal. As the stock has shown oversold conditions via the Stochastic RSI, a recovery may be imminent, but caution is advised due to the bearish engulfing and evening star patterns.

Trading Strategy: Investors should consider entering long positions cautiously near support levels with stop-loss orders just below these levels, while monitoring the bearish indicators for any signs of reversal.