Bajaj Finance, Bajaj Finserv are headed higher. Time to buy and hold

Bajaj Finance is heading towards Rs 7000 mark if the support of Rs 5000 is defended aggressively, chart shows

Shares of Bajaj Finserv gained 2.5 per cent in the inra-day trade today, quoting at Rs 10,198-mark, on the BSE. In the past seven trading days, the stock has rallied around 18 per cent after the government proposed to increase foreign direct investment in the insurance sector to 74 per cent, a move aimed at attracting overseas players. The stock is trading close to its all-time high level of Rs 10,297, hit on December 18, 2019.

"While near-term challenges remain, sound fundamentals of Bajaj Finserv's business franchise are likely to sustain. BFL is well capitalized with a conservative leverage, and both BALIC and BAGIC have healthy solvency ratios and strong operating metrics, with structural tailwinds to benefit them for the long term," say analysts at Sharekhan with a 'Buy' recommendation on the stock and a revised SOTP-based price target of Rs 10,860.

Bajaj Finance, and Bajaj Auto, meanwhile, advanced 1.5 per cent and 1.4 per cent, respectively in the intra-day trade. In comparison, the benchmark S&P BSE Sensex was down nearly 200 points at 51,143 levels at 11:00 AM. On the downside, Bajaj Electricals, Bajaj Consumer, and Bajaj Holdings were down between 0.2 per cent and 0.8 per cent.

Here's how these stocks look on charts: 

Bajaj Finserv Ltd (BAJAJFINSV): A clear breakout from the consolidation range of Rs 9,500 to Rs 8,500 levels has led to a record high of 10,000 levels, as per the weekly chart. The current momentum is not exhibiting any weakness; rather, the Relative Strength Index (RSI) is displaying a double bottom breakout. The overall trend is reflecting a strong strength and momentum which appears to be heading towards 10,800 to 11,000 levels. The medium-term objective shows rally towards uncharted territory of 12,000 levels. The closing basis support stays at 9,500 on the weekly chart.. CLICK HERE FOR THE CHART
 
Bajaj Auto Limited (BAJAJ-AUTO): The stock, which is witnessing selling pressure near Rs 4,300 levels, needs to aggressively cross this milestone to have show upside. On the downside, the sentimental mark of Rs 4,000 holds key significance. Until this support is defended, the positive bias is going to survive. While the RSI looks weak, the follow-up selling pressure is not gaining ground, as per the daily chart. CLICK HERE FOR THE CHART
 
Bajaj Finance Limited (BAJFINANCE): A firm trendline breakout has opened doors towards the uncharted territory with momentum staying highly optimistic. The weekly chart shows a strong bullish candle signifying an upside towards the Rs 6,000 mark. Now, if the counter manages to sustain above Rs 5,000 levels, the medium-term outlook may see the stock rallying towards Rs 6,800 and Rs 7,000 levels. The Moving Average Convergence Divergence (MACD) is favourable as it has displayed resistance to turn into a negative crossover lately. CLICK HERE FOR THE CHART