Bajaj Finance shares cross Rs 1,100 mark for first time, overbought on charts; what's next?

Shares of Bajaj Finance hit their record high amid a rally in the broader market today. The NBFC stock rose for the sixth straight session turning overbought on technical charts. The stock climbed 1.44% to a peak of Rs 1102.45 against the previous close of Rs 1086.70. Market cap of Bajaj Finance climbed to Rs 6.75 lakh crore. Total 1.41 lakh shares of the firm changed hands amounting to a turnover of Rs 15.43 crore on Thursday. 

The stock has gained 55.11% in a year. On the other hand, its parent index Sensex has risen 6.25% during the period. 

The stock is overbought on charts with a RSI of 74.8. A level below 30 is defined as oversold while a value above 70 is considered overbought. 

The stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Bajaj Finance stock has a one-year beta of 1.2, indicating high volatility during the period.

Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, "Bajaj Finance extending its winning streak with yet another strong breakout. The stock has surged past the Rs 1050 mark with conviction, riding on healthy volumes and renewed buying interest. The price action shows clear bullish intent, with the counter holding well above its 50-day and 200-day EMAs. Momentum indicators, including the RSI near 74, suggest strong buying appetite, though a brief pause or mild consolidation wouldn’t be surprising after the sharp run-up. The trend structure remains firmly positive, characterized by higher highs and higher lows. As long as the stock stays above Rs 950, the momentum is likely to continue toward Rs 1,130 in the near term. Overall, the sentiment remains upbeat, and traders may look to accumulate on dips."

LKP Securities has a buy call on the stock. According to the brokerage, the stock has moved up after a few weeks of consolidation, indicating a rise in optimism. It has crossed its previous swing high, reinforcing the bullish sentiment. On the upper side, the stock may hit Rs 1,260, while on the lower side, stop loss is placed at Rs 937.

Riyank Arora, technical analyst at Mehta Equities said, "The stock is showing signs of recovery after a brief consolidation phase. Strong support is placed near Rs 1,070, while resistance is seen around Rs 1,130. A breakout above Rs 1,130 may trigger an upside move toward Rs 1,160–Rs 1,180. Overall outlook remains positive with a buy-on-dips strategy."

A R Ramachandran, SEBI registered Independent analyst says, "Bajaj Finance stock price is bearish on the Daily charts & also overbought with strong resistance at 1102.  Investors should be booking profits as a Daily close below support of 1072 could  lead to a target of 972 in the near term."

In Q2, the NBFC's AUM grew 24% to Rs 4,62,250 crore, up from Rs 3,73,924 crore as of 30 September 2024. The company’s deposit book climbed 5.4% to around Rs 69,750 crore compared to Rs 66,131 crore in the year-ago period.

The lender’s customer franchise climbed to 110.64 million, with 4.13 million new customers added during the quarter, continuing its strong retail traction.