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The recent debut of Bajaj Housing Finance, a subsidiary of Bajaj Finance, on the stock market has sent ripples through the financial landscape. The IPO witnessed a resounding success, with the stock opening at a staggering 114% premium over its issue price. This surge in investor enthusiasm, however, seems to have triggered profit-taking in both Bajaj Finance and Bajaj Finserv, the parent company. As the initial euphoria surrounding Bajaj Housing Finance's IPO subsides, investors are left pondering the next steps for these closely intertwined entities.
Bajaj Finance, the flagship company, witnessed a decline of over 3% following the IPO. The stock's technical analysis reveals a 'Bearish Engulfing' pattern on the daily chart, indicating a potential bearish reversal. This pattern, coupled with a negative crossover on the 14-day RSI, suggests a tepid near-term outlook. The stock faces resistance at Rs 7,450 and Rs 7,600, while support levels lie at Rs 7,135 and Rs 6,950.
Bajaj Finserv, the promoter company, also experienced a dip of over 2%. Its daily chart also exhibits a similar pattern to Bajaj Finance, indicating a possible downward trend. However, weekly chart analysis suggests a potential support level at Rs 1,855. A sustained break below this level could lead the stock towards its 20-DMA, currently at Rs 1,778. Resistance for Bajaj Finserv is seen at Rs 1,895.
The recent market dynamics highlight the intricate interplay between Bajaj Finance, Bajaj Finserv, and Bajaj Housing Finance. While the IPO's success generated significant interest, the subsequent profit-taking in the parent companies underscores the need for a cautious approach. Investors should closely monitor the stock movements of both Bajaj Finance and Bajaj Finserv, paying particular attention to the support and resistance levels identified in the technical analysis. Prudent decision-making based on a careful assessment of these factors is crucial for navigating the market landscape in the wake of the IPO.
Source: Strategies to trade Bajaj Finance, Bajaj Finserv post Bajaj Housing debut