Bajaj Finserv Ltd (NSE: BAJAJFINSV), a part of Bajaj Holdings & Investments Ltd, is an Indian financial services company with a focus on lending, asset management, wealth management and insurance. Its current business lines include lending and wealth advisory services through Bajaj Finance Ltd and protection through Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. Bajaj Finserv Limited and Bajaj Finance Limited operate under the Bajaj Finserv brand. Bajaj Allianz Life Insurance Company Ltd and Bajaj Allianz General Insurance Company Ltd operate under the Bajaj Allianz brand. The company has over 20,154 employees on its rolls at 1,409 locations and is engaged in consumer finance businesses, life insurance, and general insurance. Apart from financial services, Bajaj Finserv is also active in wind–energy generation with an installed capacity of 65.2 MW.
On the technical front, BAJAJFINSV has higher highs and higher lows on the daily charts and is currently placed above the medium-term EMAs in the daily frame. In the recent past, after clocking a low of Rs5,400 level, the stock has witnessed a bounce and rallied to the current levels. At the current juncture, the stock has formed a base of around Rs5,735 level on the lower side and is all set to move higher. The overall chart structure of the counter looks bullish from current levels and is witnessing a bounce from the support zone around Rs6,080 level. This may trigger a fresh round of buying which may take the stock towards Rs6,800 plus level. The stock is currently performing in line with the broader markets indicating the inherent strength in the counter and is trading well above the major long-term support levels. On the Bollinger band (20,2), the stock price is trading above the mean with the upper band facing in the northward direction indicating the price likely to move higher. Analyzing the recent volume price action, the volumes have been encouraging in the recent up move indicating strong hands have started accumulating the stock at current levels.
On the oscillator’s side, RSI (14) is trading in a comfortable zone of above 60 levels indicating the intact bullishness in the stock. We expect the counter to continue its outperformance in the coming trading days as well and may move towards Rs6,900 level in the medium-term. Any correction towards the recent support levels of Rs6,080 level may be utilized to average the positions.
Srinivas Krishnan Bobba, Deputy Manager (technical research analysis) Karvy Stockbroking Ltd