BAJFINANCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | BAJFINANCE | Market Cap | 5,47,392 Cr. | Current Price | 880 ₹ | High / Low | 1,102 ₹ |
| Stock P/E | 34.0 | Book Value | 150 ₹ | Dividend Yield | 0.50 % | ROCE | 11.5 % |
| ROE | 18.5 % | Face Value | 1.00 ₹ | DMA 50 | 958 ₹ | DMA 200 | 950 ₹ |
| Chg in FII Hold | -0.48 % | Chg in DII Hold | 0.47 % | PAT Qtr | 3,750 Cr. | PAT Prev Qtr | 4,251 Cr. |
| RSI | 34.6 | MACD | -30.2 | Volume | 1,33,10,891 | Avg Vol 1Wk | 1,07,64,921 |
| Low price | 810 ₹ | High price | 1,102 ₹ | PEG Ratio | 1.05 | Debt to equity | 3.18 |
| 52w Index | 23.8 % | Qtr Profit Var | 1.19 % | EPS | 27.2 ₹ | Industry PE | 17.2 |
📈 Chart & Trend Analysis: BAJFINANCE is trading below both its 50 DMA (958 ₹) and 200 DMA (950 ₹), with the current price at 880 ₹. This indicates bearish bias and short-term weakness.
📊 Momentum Indicators: RSI at 34.6 shows weak momentum, nearing oversold territory. MACD at -30.2 confirms bearish crossover, signaling continued short-term weakness.
📉 Bollinger Bands & Volume: Price is near the lower band, suggesting potential support but also weakness. Current volume (1,33,10,891) is above weekly average (1,07,64,921), showing strong participation despite bearish signals.
🔑 Support & Resistance Zones:
- Support: 850–880 ₹ (near-term), 810 ₹ (major low)
- Resistance: 950–958 ₹ (DMA cluster), 1,000–1,050 ₹ (trendline resistance), 1,102 ₹ (52-week high)
Optimal Entry: 850–880 ₹ (near support)
Optimal Exit: 950–1,000 ₹ (resistance zone)
📌 Trend Status: The stock is consolidating with bearish bias, showing weak momentum and trading below key moving averages.
Positive
- Strong ROE (18.5%) indicates efficient capital use.
- Dividend yield of 0.50% provides shareholder returns.
- PEG ratio of 1.05 suggests fair valuation relative to growth.
- Quarterly PAT remains strong at 3,750 Cr., showing earnings stability.
Limitation
- ROCE (11.5%) is modest compared to peers.
- High debt-to-equity ratio (3.18) indicates leveraged balance sheet.
- Weak RSI and negative MACD show lack of momentum.
- Stock trading below both 50 DMA and 200 DMA, reflecting short-term weakness.
Company Negative News
- FII holding decreased (-0.48%), showing reduced foreign investor confidence.
- Quarterly PAT declined from 4,251 Cr. to 3,750 Cr., showing earnings pressure.
Company Positive News
- DII holding increased (+0.47%), reflecting domestic institutional support.
- EPS of 27.2 ₹ supports valuation strength.
Industry
- Industry PE at 17.2 is much lower than BAJFINANCE’s PE (34.0), suggesting premium valuation compared to peers.
- Financial services sector outlook remains favorable with rising retail credit demand and digital lending expansion.
Conclusion
⚖️ BAJFINANCE is consolidating with bearish bias, trading below key moving averages with weak momentum signals. Fundamentals remain strong with high ROE and stable profits, but high leverage and stretched valuation limit upside. Traders may consider entry near 850–880 ₹ with exits around 950–1,000 ₹. Momentum confirmation is needed before aggressive positioning, as short-term signals remain weak despite strong fundamentals.
Would you like me to extend this into a peer benchmarking overlay comparing BAJFINANCE against other NBFCs and banks (valuation, ROE/ROCE, momentum) so you can see relative strength before deciding entry?