Bajaj Finserv can hit Rs 20,000; Bajaj Finance heading towards Rs 8,000

Here is how Bajaj Finserv and Bajaj Finance look on the technical charts

Bajaj twins - Bajaj Finance and Bajaj Finserv - were among the top gainers in trade on Tuesday, after the latter said it has received an in-principle approval from Securities and Exchange Board of India (Sebi) for sponsoring a mutual fund. 

The stock surpassed its Monday’s high of Rs 15,416.05 touched in the intra-day trade and quoted nearly 8 per cent higher at Rs 16,590 levels on Tuesday.

Bajaj Finance, on the other hand, jumped around 4 per cent during the day to hit a high of Rs 7,046 levels during the day on Tuesday. In the process, the stock overtook State Bank of India (SBI) in market-capitalisation (market-cap). Track SBI stock here

Fundamental triggers aside, techncial charts hint at more upside for Bajaj Finance and Bajaj Finserv in the days ahead, provided the overall market momentum stays strong. Here's what one can expect.

Bajaj Finserv Ltd (BAJAJFINSV)
Likely target: Rs 18,000 and Rs 20,000
Upside potential: 12% to 25%

Since early July, the shares of Bajaj Finserv have surged over 33 per cent. This massive upside has been well supported by long bullish candles reflecting the strength of the stock, as per the daily chart. The stock has a support of Rs 14,000 levels, and as long as this support is defended, the positive momentum will stay and can take the stock towards Rs 18,000 and even Rs 20,000 levels in the weeks ahead. The Relative Strength Index (RSI), too, is continuously seeing strength in the overbought category, which is suggestive of an upward trend in the days ahead. CLICK HERE FOR THE CHART

Bajaj Finance Ltd (BAJFINANCE)
Likely target: Rs 8,000
Upside potential: 15%

After the breakout above the resistance of Rs 5,800 mark, the counter has decisively managed to hold the support of Rs 6,000 levels. Aminf the recent rally, the stock has held the support of the 50-days moving average (DMA), currently placed at Rs 6,196. The immediate trend suggests a closing basis support of Rs 6,600 levels. As long as this support is held, Bajaj Finance may see an aggressive move and can hit Rs 8,000 levels in the days ahead. CLICK HERE FOR THE CHART