Bajaj Finserv soars 60% gains in 16 days

Bajaj Finserv spurted 4.04% to Rs 8,881.55, extending gains for the sixteenth consecutive session.

Shares of Bajaj Finserv surged 59.35% in sixteen trading sessions from a recent closing low of Rs 5,573.40 on 30 October 2020.

The stock was in demand after the Reserve Bank of India's (RBI's) internal working group on Friday (20 November 2020) recommended that well run large non-banking finance companies (NBFCs), with an asset size of Rs 50,000 crore and above, including those which are owned by a corporate house, may be considered for conversion into banks subject to completion of 10 years of operations and meeting due diligence criteria and compliance with additional conditions specified in this regard.

On the technical front, the stock's RSI (relative strength index) stood at 92.309. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 6,217.44 and its 200-day moving average (DMA) placed at 6,213.73.

The stock soared 122.84% from its 52-week low of Rs 3,985.60 on 27 May 2020.

Bajaj Finserv's consolidated net profit skid 19.9% to Rs 1,618.27 crore on 5.8% rise in total income to Rs 15,051.59 crore in Q2 September 2020 over Q2 September 2019.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.

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