Bajaj Finance shares gain 7% from 52-week low, more upside ahead?

Shares of Bajaj Finance have gained 7% from their 52-week low in a single trading session. The NBFC stock, which fell to a 52 week low of Rs 788.40 on March 23, reached a high of Rs 844.10 in the current session. However, the Bajaj Finance stock is still oversold on charts with a RSI of 25.5. It trades below all short term and long term moving averages 

Market cap of Bajaj Finance rose to Rs 5.23 lakh crore. Total 3.84 lakh shares of the firm changed hands amounting to a turnover of Rs 39.13 crore. 

In the current session, the stock gained 4% intra day to Rs 844.10. Total 3.84 lakh shares of the firm changed hands amounting to a turnover of Rs 39.13 crore. 

The stock has lost 18% in the last six months and slipped 18% in a month. The stock has fallen 13.23% this year. 

Jigar Patel from Anand Rathi said, "Support will be at Rs 790 and resistance at Rs 845. A decisive move above the Rs 845 level may trigger a further upside of Rs 870. The expected trading range will be between Rs 790 and Rs 870 in the short-term." 

MOFSL has assigned a price target of Rs 900. It reiterated its 'Neutral' rating on the stock. This is based on 3.6 times December 2027 book value per share. The fresh price target suggests 11 per cent potential upside ahead.

Bajaj Finance has fallen sharply over the past one month but it believes the prevailing valuations are fair but not particularly compelling in the context of near-term uncertainties. 

According to the domestic brokerage, Bajaj Finance is transitioning into a more mature phase of growth, characterised by tighter risk controls, moderated expansion in select segments, and a sharp pivot toward technology and customer monetization. This will enhance long-term earnings visibility and reduce cyclicality, it said.