Bajaj Finance shares extend gains, still down 24% from one-year high; time to buy, sell or hold?

Shares of Bajaj Finance Ltd rose on Thursday, extending their gains for the third straight session. The stock today settled 0.83 per cent higher at Rs 5,900.90 over its previous close of Rs 5,852.30. The scrip has climbed in six out of seven sessions in April so far. That said, the counter has declined 10 per cent on a year-to-date (YTD) basis. At today's closing level of Rs 5,900.90, Bajaj Finance has slipped 24.12 per cent from its 52-week high of Rs 7,777, hit on September 22 last year. Yet, the stock has moved 12.71 per cent up from its one-year low of Rs 5,235.60, a level seen on June 17, 2022.

A total of 22,000 shares changed hands today on BSE, which was lower than the two-week average volume of 49,000 shares. Turnover on the counter stood at Rs 13.09 crore, commanding a market capitalisation (m-cap) of Rs 3,57,258.62 crore.

Earlier this month, the non-banking financial firm said its new loans booked during the March quarter grew by 20 per cent year-on-year (YoY).

On the technical front, support on the counter could be seen at 5,700, followed by Rs 5,705 and Rs 5,650 levels, analysts said.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "Bajaj Finance is in a corrective phase. From a technical point of view, the stock lacks traction and is consolidating in a slender range. As far as levels are concerned, the support is placed around Rs 5,650-odd zone, followed by the swing low of Rs 5,485. On the higher end, a series of resistance is placed from Rs 6,200 to Rs 6,400 zone from a short-term perspective."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "At the current juncture, the said counter has made a nice base around Rs 5,700 level. Strong upside momentum is expected above Rs 6,000 levels. One needs to wait for a daily close above Rs 6,000 levels for fresh longs. As of now wait and watch."

AR Ramachandran from Tips2trades said, "Bajaj Finance has strong resistance at Rs 5,950 on the daily charts. Investors should buy only if a daily close is above this resistance for higher targets of Rs 6,140-6,360 in the near term. Support will be at Rs 5,705."

Brokerage Investec has a 'Sell' call for Bajaj Finance with a potential downside target price of Rs 4,800.

In contrast, Bajaj Finance has an average target price of Rs 7,731.44, Trendlyne data showed, suggesting a potential upside of 30.82 per cent. The scrip has a one-year beta of 1.35, indicating high volatility.

Meanwhile, Indian equity benchmarks settled in the green amid highly volatile trade, extending their gains for the ninth consecutive session.

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