BAJFINANCE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart Patterns & Trend: BAJFINANCE is consolidating near its recent high of 1,102 ₹. The current price (1,008 ₹) is slightly below the 50 DMA (1,015 ₹) but above the 200 DMA (941 ₹), suggesting medium-term strength but short-term weakness. The stock is in a sideways consolidation phase with resistance overhead.

📈 Moving Averages:

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

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

- Breakout above 1,015–1,030 ₹ could trigger momentum toward 1,080–1,100 ₹.

📉 RSI: At 43.7, RSI is neutral to weak, reflecting limited buying strength.

📉 MACD: Negative (-6.40), 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 (37,33,571) is below the 1-week average (44,62,709), suggesting reduced participation and lack of strong momentum.

🎯 Entry Zone: 990–1,005 ₹ (near support).

🎯 Exit Zone: 1,080–1,100 ₹ (near resistance trendline and recent high).

⚡ Support Levels: 990 ₹ and 941 ₹.

⚡ Resistance Levels: 1,015 ₹ and 1,102 ₹.

Positive

• Strong ROE (18.5%) indicates efficient profitability.
• Quarterly PAT growth (4,251 Cr. vs 4,133 Cr.) shows consistent earnings momentum.
• EPS of 25.8 ₹ supports long-term earnings visibility.
• FII holdings increased (+0.26%), reflecting foreign investor confidence.

Limitation

• High P/E (39.2) compared to industry average (21.2), suggesting premium valuation.
• ROCE modest at 11.5%, reflecting average capital efficiency.
• Debt-to-equity ratio at 3.18 is relatively high.
• Volume participation weaker than average, limiting short-term momentum.

Company Negative News

• MACD negative, confirming short-term weakness.
• DII holdings decreased (-0.13%), showing reduced domestic investor interest.

Company Positive News

• Quarterly PAT increased 17.2%, showing strong profitability growth.
• Debt-to-equity manageable for NBFC sector despite being high relative to peers.
• FII inflows reflect confidence in long-term growth.

Industry

• Industry P/E at 21.2, lower than BAJFINANCE’s 39.2, suggesting overvaluation.
• NBFC sector outlook remains strong with rising credit demand and consumer financing growth.

Conclusion

⚖️ BAJFINANCE is consolidating with neutral RSI and negative MACD, showing short-term weakness but medium-term resilience. Short-term traders may consider entry around 990–1,005 ₹ with exits near 1,080–1,100 ₹. The stock is consolidating, awaiting breakout above 1,015–1,102 ₹ for trend continuation.