BAJAJFINSV - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.8

📊 Chart Patterns & Trend: BAJAJFINSV is consolidating after testing its recent high of 2,195 ₹. The current price (2,044 ₹) is slightly below the 50 DMA (2,060 ₹) but above the 200 DMA (1,986 ₹), indicating medium-term strength but short-term weakness. The stock is in a sideways consolidation phase with resistance overhead.

📈 Moving Averages:

- Price above 200 DMA shows medium-term bullish undertone.

- Trading just below 50 DMA suggests short-term weakness.

- Breakout above 2,060–2,080 ₹ could trigger momentum toward 2,150–2,195 ₹.

📉 RSI: At 42.9, RSI is neutral to weak, reflecting limited buying strength.

📉 MACD: Negative (-8.14), showing bearish crossover and short-term consolidation.

📊 Bollinger Bands: Price is near the mid-band, confirming sideways consolidation with no breakout yet.

📊 Volume Trends: Current volume (4,53,262) is below the 1-week average (5,24,764), suggesting reduced participation and lack of strong momentum.

🎯 Entry Zone: 2,020–2,040 ₹ (near support).

🎯 Exit Zone: 2,150–2,190 ₹ (near resistance trendline and recent high).

⚡ Support Levels: 2,020 ₹ and 1,986 ₹.

⚡ Resistance Levels: 2,060 ₹ and 2,195 ₹.

Positive

• Strong ROCE (27.4%) and ROE (20.9%) highlight efficient capital use.
• Debt-free balance sheet ensures financial stability.
• Quarterly PAT growth (1,085 Cr. vs 330 Cr.) shows strong earnings momentum.
• DII holdings increased (+0.40%), reflecting domestic institutional confidence.

Limitation

• Extremely high P/E (228) compared to industry average (18.7), suggesting overvaluation.
• EPS is low (8.97 ₹), limiting earnings visibility.
• PEG ratio (3.97) indicates expensive valuation relative to growth.
• MACD negative, confirming short-term weakness.

Company Negative News

• FII holdings decreased (-0.29%), showing reduced foreign investor interest.
• Weak momentum indicators (RSI and MACD) suggest short-term consolidation.

Company Positive News

• Quarterly PAT increased 19.6%, showing strong profitability growth.
• Debt-free structure adds financial resilience.
• DII inflows reflect confidence in long-term growth.

Industry

• Industry P/E at 18.7, far lower than BAJAJFINSV’s 228, highlighting extreme overvaluation.
• Financial services sector outlook remains strong with rising demand for diversified financial products.

Conclusion

⚖️ BAJAJFINSV is consolidating with neutral RSI and negative MACD, showing short-term weakness but medium-term resilience. Short-term traders may consider entry around 2,020–2,040 ₹ with exits near 2,150–2,190 ₹. The stock is consolidating, awaiting breakout above 2,060–2,195 ₹ for trend continuation.