Technical Call: Bajaj Finserv – BUY

Long term investors with a minimum time horizon of one year can buy shares of Bajaj Finserv (Rs 1,917) now. The stock has been in a strong uptrend since May 2020. After hitting a high of Rs 1,932 in October 2021, the stock started to decline and entered a consolidation phase for over two years. This correction occurred in the form of a wedge pattern on the chart. A decisive breakout above Rs 1,660 in August marked the end of this consolidation. The strong follow-through upside since then confirms that the broader uptrend has resumed. A cluster of support is in the range of Rs 1,700-1,550. The stock is likely to target Rs 2,400-2,500 first. Thereafter, another consolidation phase towards Rs 2,200-2,100 may occur. But eventually, the stock may cross Rs 2,500. This break could take Bajaj Finserv share price up to ₹ 3,000. Long term investors can buy now at ₹1,917. Buy more on dips at ₹1,740. Keep the stop loss at ₹1,520. If the price rises to ₹2,450, raise the stop loss to ₹2,050. If the stock price touches ₹2,850, raise the stop loss further to ₹2,600. Exit the stock at ₹3,000.