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Bajaj Finance share price hits record high, investor wealth nearly triples in one year; may rally 10% more

Bajaj Finance has been performing consistently for the last three quarters. Analysts believe Bajaj Finance stock may rally up to 10 per cent more. Image: Reuters

Bajaj Finance share price gained as much as 2.3 per cent to hit a record high of Rs 6,228.60 apiece in intraday on BSE. The stock has soared over 183 per cent in a span of one year. The gains in the index heavyweight were on the back of unlocking the economy. Analysts believe that this will lead to faster recovery and lower NPA. Bajaj Finance has been performing consistently for the last three quarters. Analysts believe Bajaj Finance stock may rally up to 10 per cent more. American brokerage BofA Securities has given a ‘buy’ rating to the stock, as it believes that the technology platform will further accelerate Bajaj Finance’s growth trajectory and market share gains, with strong positive operating leverage.

Bajaj Finance reiterated that the financial impact of COVID 2.0 has been much milder as compared to the first wave with Bajaj Finance remaining open for business across all categories. The brokerage firm said the pickup in early Jun’21 (especially in high frequency B2B business) has been strong with Bajaj Finance hoping to reach 75-80% of Mar’21 levels post 14th Jun’21 with full normalization by early July. In volume traded terms, around 1.95 lakh shares have exchanged hands on BSE, while a total of 32.33 lakh shares have traded on NSE so far in the day.

Technical charts say Bajaj Finance may rally up to 10% more

Analysts said that the stock staged a breakout while taking out a major double top resistance which existed in the Rs 5,800-5,850 zone. In the process, the stock has shifted its support higher to 5850. The stock is now in uncharted territory; so traders can follow the momentum while strictly trailing their stoplosses, said Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told Financial Express Online. He said that from the technical perspective, the stock might resist near 6250-6300 area. Also, the stock continues to show a bearish divergence of RSI against the price. This makes the stock prone to consolidation at current levels. “For both traders and investors, trend may be followed but vigilantly while trailing their stop-losses. Support exists at 5850 levels,” Vaishnav said.

Technical charts suggest that the stock may rally a further 10 per cent. The stock is in stronger up move till the time it holds above 5600, technical experts said. “On the higher side, it can extend the gains till 6400-6800,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online

A close above Rs 6,225 should lead Bajaj Finance to Rs 6,550 but since the broader market is on the higher side, new investors should wait for a dip near 5680-5885 to enter this stock, AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)


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