Short Term Stock Idea : Bajaj Finance : BAJFINANCE

In July 2019 Bajaj finance crashed to 3000 levels from its all time peak of 3700 levels due to overall weak market sentiments in finance sector including banks.

Then for more than a month its getting consolidated at 3000 to 3300 levels and now its showing some positive trend in both ADX and MACD charts. MACD which is already above signal now almost crossed the base line. ADX also positive indicator slowly moving up above negative indicator and ADX is still at 25 levels. So in the coming days stock is expected to gain more momentum and move to 3700 levels if overall market and finance index support.

In June 2019 quarter Bajaj Finance reported a better than expected result in an overall sluggish economic condition especially in the finance sector. In standalone basis Bajfinance reported 39% sales year on year growth and 34% profit after tax growth. In consolidated basis 47% sales and 43% PAT growth.

Still stock struggled to reach its all time high due to overall weakness in the finance sector and index and its PE.

So when market recovers from its current levels Bajaj Finance also expected to move up from current levels.