HDFC, HDFC Bank, Bajaj Finance, Bajaj Finserv: Should you buy or sell them?

The Bajaj and HDFC twins can rally up to 8 per cent provided the stocks manage to sustain above the following key technical levels on the daily and weekly charts.

Among the financial group stocks, the so-called Bajaj twins and HDFC twins, have been in limelight both for the stock performance and news related developments. The HDFC twins in particular - HDFC and HDFC Bank - witnessed an adverse market reaction after the financial majors announced the amalgamation of HDFC with HDFC Bank. The HDFC twins tanked over 20 per cent in the following trading sessions and were one of the chief laggards in the market fall.

Further, shares of Bajaj Finserv and Bajaj Finance too plunged 33 per cent and 23 per each from their respective highs touched in November, 2021 amid worries on the earnings front. In fact, Bajaj Finance went on to register a fresh 52-week low, thus losing out on the the bullishness it built over the last  2-3 years. 

Meanwhile, among the Bajaj pack, shares of Bajaj Auto shares has shown expectional price action and seems to be on track to hit a new historic peak.
 

Given the overall concern about slowdown in economic growth as high inflation and rising interest regime may take its tool; Here's what the charts indicate for these five stocks:

Housing Development Finance Corporation Ltd (HDFC)

Outlook: Needs to conquer the 100-DMA to jump 8 per cent.

The stock needs to conquer the 100-DMA placed at Rs 2,347 with robust volume to embark a new breakout that could see a jump towards Rs 2,543 level, which is its 200-DMA, shows the daily chart. The said outlook may come true as the MACD has succeeded in crossing the zero line upward. CLICK HERE FOR THE CHART

HDFC Bank Limited (HDFCBANK)

Outlook: Needs to cross 100-DMA

Only a close above 100-DMA set at Rs 1,430 could help the stock price head towards Rs 1,483, its 200-DMA, according to the daily chart. The immediate support for the stock comes at 1,390 level, which needs to defended on a closing basis. CLICK HERE FOR THE CHART

Bajaj Finserv Ltd (BAJAJFINSV)

Likely target: Rs 14,000

Upside potential:  8%

After drifting under its 50-weekly moving average (WMA) on a closing basis placed at Rs 15,683, the bearish sentiment dragged the stock to Rs 12,158, a free fall of over 20 per cent. At present, the stock is attempting to take support of the 100-WMA, positioned at Rs 12,158 mark. If the stock succeeds in doing so, one can expect a bounce back towards the Rs 14,000 level. CLICK HERE FOR THE CHART

Bajaj Finance Ltd (BAJFINANCE)

Likely target: Rs 6,500

Upside potential:  6%

Shares of Bajaj Finance managed to hold the support of 100-WMA, currently placed at Rs 5,745 mark. It did violate the same, but could not add the follow-up selling volume. Now as the stock manages to sustain over Rs 6,100 level, it might scale to Rs 6,500 if the support of Rs 6,000 stays firm, according to the daily chart. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Likely target: Rs 4,400

Upside potential:  11%

Among the major Bajaj group stocks, Bajaj-Auto is the only one trading above the 200-day moving average (DMA) with a bullish pattern of “Golden Cross”. The two prime technical indicators, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are positively placed with an upward direction, shows the daily chart. The immediate support for the stock falls at Rs 3,700 and the counter might see a rally to Rs 4,400 level. CLICK HERE FOR THE CHART