Bajaj twins hit new lows every month since November 2022; weakness persists

Every reversal in Bajaj twins is expected to face sell-off, until key levels are not conquered, with aggressive volumes.

Bajaj Finance and Bajaj Finserv, both Bajaj twins have hit new lows every month since November last year, signalling weakness and accumulation, if any, has been unable to overpass the selling pressure. 

If the current trend persists, both the stocks may enter medium-term bearishness, where they could lose interest of the market participants, effectively negating any potential reversal.

In addition, both Bajaj twins have breached the key 200-day moving average (DMA) and formed “Death Cross”, a bearish pattern indicating that bears shall dominate severely if the counters fail to hold the decline. 

Bajaj Finserv has plunged 23 per cent and Bajaj Finance fell 18 per cent since November 2022, with every reversal undergoing elevated sell-off. So far, the gradual decline has failed to defend any ground. 

On Wednesday, shares of Bajaj Finserv and Bajaj Finance traded with positive bias surging 0.80 per cent and 0.70 per cent, respectively, despite benchmark indices tumbling in early trades post US Federal Reserve raised interest rates by a quarter percentage point last night.

Here’s the technical outlook on Bajaj twins for coming sessions:-

Bajaj Finserv Ltd (BAJAJFINSV)

Outlook: counter is headed in the direction of Rs 1,200 and Rs 1,150 levels

While shares of Bajaj Finserv managed to rebound after reaching fresh monthly low, the overall trend remains downward. The immediate hurdle for the stock is at Rs 1,348-mark, its 50-day moving average (DMA). 

Only a definitive close over the 50-DMA could spark some stability. The downward trend needs to surpass Rs 1,485, its 200-DMA, with aggressive volumes to negate any weakness. There are consecutive hurdles at Rs 1,400 and Rs 1,430 level, which the counter needs to strike to reach the 200-DMA.

The current immediate trend suggests that the counter is headed in the direction of Rs 1,200 and  Rs 1,150 levels.  CLICK HERE FOR THE CHART

Bajaj Finance Ltd (BAJFINANCE)

Outlook: Stock is headed towards Rs 5,400 to Rs 5,200 level.

The weekly chart points to a breakdown that is unable to conquer the Rs 6,500 level, which is the negative crossover mark of 50-weekly moving average (50-WMA) and 100-WMA. Thus, until this key hurdle is not conquered, the trend is likely to face selling pressure on reversal.

Moreover, the Rs 6,500 mark is also the 200-DMA, which the trading community majorly opts while taking a short-term bets. There are immediate resistances exist at Rs 6,000 and Rs 6,200 levels. The key trend remains downward, with bias gradually slipping in bears hold. 

The overall trend is headed towards Rs 5,400 to Rs 5,200 levels. CLICK HERE FOR THE CHART