HDFC twins, Bajaj group stocks have more upside ahead, charts suggest

HDFC twins are nearing all-time highs while Bajaj group stocks have seen a tremendous surge in the ongoing November series.

Select financial stocks such as HDFC twins, Bajaj Finance and Bajaj Finserv have given steady returns in the past two months. Mortgage lender HDFC has rallied 36 per cent while HDFC Bank has gained 33 per cent. On the other hand, Bajaj Finance and Bajaj Finserv have climbed 29 per cent, and 25 per cent respectively, during the same period, exchange data shows.

So, is there more steam left in these stocks or are they going to witness a correction in the short term?

Take a look at what charts indicate.

HDFC Bank Ltd (HDFCBANK): The stock is comfortably trading around the recent all-time high of Rs 1,414.80. The overall trend is highly optimistic with bulls showing significant interest in the range of Rs 1,250 to Rs 1,350 levels. With this surge and firm positive sentiment, the trend is heading towards Rs 1,700 levels in the coming sessions. The support comes in at Rs 1,300 levels. The stock has entered the overbought condition of the Relative Strength Index (RSI), yet the price is not exhibiting any weakness. CLICK HERE FOR THE CHART

Housing Development Finance Corporation Ltd (HDFC):  The “Golden Cross” formation and firm price strength in the overbought condition of RSI indicate a breakout towards Rs 2,700 to Rs 2,900 levels. Every up move has seen a strong buying momentum which seems to exist till the stock holds Rs 2,250 and Rs 2,170 levels.  The medium-term outlook has turned highly optimistic with corrective moves likely to witness buying and accumulation, as per the weekly chart. CLICK HERE FOR THE CHART

Bajaj Finance Limited (BAJFINANCE):  The recent surge from Rs 3,400 to Rs 4,550 levels has seen huge buying momentum. A surprising rally of over 32 per cent may see some profit-booking. Nevertheless, the trend remains optimistic with the stock price heading towards Rs 5,500 levels from a medium-term perspective. The immediate support comes in at Rs 4,200 levels, as per the daily chart. CLICK HERE FOR THE CHART

Bajaj Finserv Ltd (BAJAJFINSV): This counter has seen substantial upside after crossing the 200-day moving average (DMA). This up move is supported by the Moving Average Convergence Divergence (MACD), which has crossed the zero line upward. The momentum and direction stay upward with the stock moving in the direction of Rs 8,000 levels. The closing basis support is located at Rs 7,200 levels. CLICK HERE FOR THE CHART