Bajaj Finance shares likely to consolidate, should investors wait-and-watch or buy on dips?

Shares of Bajaj Finance are likely to consolidate in the near term, say analysts adding that the large cap stock could run out of fizz soon. The stock hit a record high of Rs 9391.15 on Tuesday. Since then it has been trading in the red. Bajaj Finance stock slipped 1.12% to Rs 9162.40 on BSE in the current session. The large cap stock, which is a constituent of both Sensex and Nifty, is the top gainer on these indices in terms of percentage in 2025. 

Total 0.30 lakh shares of the firm changed hands amounting to a turnover of Rs 27.39 crore on Wednesday. The stock has gained 26.62% in a year and risen 54.80% in two years. 

Bajaj Finance's relative strength index (RSI) stands at 64.4, which signals the stock is neither oversold nor overbought on charts. 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 1.1, indicating high volatility during the period.

Dr Ravi Singh, SVP - Retail Research, Religare Broking said, "The stock has been in a steady uptrend since breaking above the key resistance level of Rs 7800, reaching a high of Rs 9393 on April 22. In the near term, the price is expected to enter a consolidation phase, driven by profit booking at higher levels and the presence of a common gap around the 8900 mark. The short-term key moving average (50-day EMA) is positioned at 8565, while the daily ATR stands at 237. On the weekly chart, the stock shows strong support in the Rs 8100– Rs 8200 range. Based on the current price action, the preferred strategy would be to adopt a 'Buy on Dips' approach. Considering all technical factors, fresh long positions can be initiated in the Rs 8500–8600 range, aligned with the 50-day EMA, for the upside potential of Rs 9700 and Rs 9900. A strict stop-loss should be place below the support zone."

Om Mehra, Technical Research Analyst, SAMCO Securities said, "Bajaj Finance has been trading within a well-defined ascending channel, with the stock recently testing the upper band near Rs 9,300–Rs 9,400. This zone coincides with prior swing highs and warrants attention as a potential resistance area. Despite the strong up move, the formation of a mild negative divergence on the daily RSI suggests some short-term exhaustion in momentum. A minor pullback toward Rs 8,600–Rs 8,800 would offer a more favorable entry point, aligning with the channel’s median. Until then, a wait-and-watch approach is advisable. A breakout above Rs 9,500 would reaffirm strength and could potentially unlock fresh highs, possibly towards Rs 9,900–Rs 10,200."

Hardik Matalia, derivative Analyst, Choice Broking said, "The stock has been consistently forming higher highs and higher lows on the daily timeframe, reflecting a structurally strong bullish trend. However, today's session showed rejection from higher levels, hinting at the possibility of a time-wise or price-wise correction, or a potential throwback towards its demand zones. On the downside, immediate support is placed near the Rs 8,950 mark, followed by a stronger support level at Rs 8,800, which may offer a favorable buying opportunity on dips. A healthy retracement toward these zones could provide short-term traders with an attractive entry, provided a clear reversal confirmation is observed.  At current levels, long-term investors can continue to hold their positions, and also consider accumulating on dips given the stock’s strong trend and favorable structure."

"Short-term traders, on the other hand, are advised to wait for a throwback and a clear reversal signal near support zones before entering fresh positions. If the stock manages to sustain above Rs 9,400, it could trigger a fresh breakout and pave the way for new all-time highs in the near term, with potential upside towards the Rs 10,000 mark," added Matalia.