BAJAJHFL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns & Trend: BAJAJHFL is in a corrective phase, trading well below its 50 DMA (104 ₹) and 200 DMA (115 ₹). The current price (95.3 ₹) is close to its 52-week low (92.1 ₹), reflecting strong bearish sentiment. The stock is consolidating near support levels with oversold signals.

📈 Moving Averages:

- Price below both 50 DMA and 200 DMA confirms bearish undertone.

- Sustained weakness suggests resistance near 104–115 ₹.

- A breakout above 104 ₹ is needed to regain strength.

📉 RSI: At 26.0, RSI is deeply oversold, indicating potential for a short-term bounce.

📉 MACD: Negative (-3.23), confirming bearish crossover and weak momentum.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term support.

📊 Volume Trends: Current volume (44,03,682) is below the 1-week average (59,54,345), showing reduced participation and lack of strong buying interest.

🎯 Entry Zone: 92–95 ₹ (near support).

🎯 Exit Zone: 104–110 ₹ (near resistance trendline and DMA levels).

⚡ Support Levels: 92 ₹ and 85 ₹.

⚡ Resistance Levels: 104 ₹ and 115 ₹.

Positive

• Quarterly PAT improved to 643 Cr. from 583 Cr., showing earnings growth.
• EPS of 2.83 ₹ supports earnings visibility.
• PEG ratio of 0.75 suggests reasonable valuation relative to growth.
• ROE (13.5%) indicates moderate profitability.

Limitation

• High debt-to-equity ratio (4.44) raises leverage concerns.
• Dividend yield is 0.00%, offering no income return.
• ROCE modest at 9.55%, reflecting average capital efficiency.
• Stock trading near 52-week low with weak momentum indicators.

Company Negative News

• FII holdings decreased (-0.13%) and DII holdings decreased (-0.05%), showing reduced investor confidence.
• MACD negative, confirming short-term weakness.
• Stock has corrected sharply from its 52-week high of 137 ₹.

Company Positive News

• Quarterly PAT growth of 17.8% reflects profitability improvement.
• EPS growth supports long-term valuation strength.
• Oversold RSI may trigger short-term recovery bounce.

Industry

• Industry P/E at 18.0, lower than BAJAJHFL’s 33.5, suggesting premium valuation.
• NBFC sector outlook remains strong with rising credit demand despite leverage concerns.

Conclusion

⚖️ BAJAJHFL is consolidating near support with oversold RSI and negative MACD, showing short-term weakness but potential for a bounce. Traders may consider entry around 92–95 ₹ with exits near 104–110 ₹. The stock is in a corrective phase, awaiting breakout above 104 ₹ for trend reversal.