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Trade Spotlight: What should investors do with Bajaj Finserv, Bajaj Finance & Affle India?

Bajaj Finserv rose nearly 8 percent to hit a fresh 52-week high, Bajaj Finance rose by 3.3 percent, and Affle India closed with gains of nearly 5 percent. Read on to know what are the expert views on these stocks

August 25, 2021 / 08:26 AM IST
 
 
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Indian market closed in the green on Tuesday tracking positive trend in the Asian markets. The Nifty50 reclaimed 16,600 while the S&P BSE Sensex rallied by about 400 points.

Sectorally, buying was seen in metals, infrastructure, oil & gas, and the public sector while FMCG and IT stocks saw some selling pressure.

Stocks that were in focus include Bajaj Finserv, which rose by nearly 8 percent to hit a fresh 52-week high, Bajaj Finance (rose by 3.3 percent), and Affle India (closed with gains of nearly 5 percent).

Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

Bajaj Finserve: Ride the rally

Close

Bajaj twins are entirely in a different orbit of their own with an ultra-bullish phase. Though the current surge is completely news-driven, technically speaking, for the last 17 weeks it is moving inside a somewhat narrower ascending channel.

Hence, based on this channel, if the up move continues then its initial target should be around 16,700 levels which is the upper boundary of the said channel.

In case if it manages to get past the said level then a higher target of 17200, based on line studies, can’t be ruled out.

While medium-term investors can ride the rally with a stop below 15260 levels on closing basis short terms traders will be better off by booking profits.

Affle India: Avoid fresh longs

This counter seems to be in a medium-term downtrend as it is steadily falling from the highs of 6285 registered on 5th of March.

Hence, it is too early to conclude that the durable bottom may be in place around 3815 levels just because of the strong bounce witnessed in the last session.

Sustaining above 3876 levels the current strength may get extended towards 4300 levels and if this counter sustains above the said hurdle of 4300 then that can be considered as initial sign of trend change in favor of bulls.

Hence, we don’t advise fresh buying but traders who already own shall exit around 4300.

Bajaj Finance: Short term trader can exit

Last week this counter appears to have registered a breakout from its extremely narrow range of trading for 9 weeks with indecisive formation.

Hence, it might have unleashed a fresh leg of upswing from the lows of 6100 registered on 16th of August. However, apart from the sharp upswing of the last 5-days from the lows of 6100 to a high of 7049 it may also face resistance from a possible upper boundary of a 70-day old channel.

Therefore, in the next one or two trading sessions if it fails to close above 7049 levels then short term traders should exit whereas positional traders who are ready to hold for couple of months can do so with a stop below 6727 levels on a closing basis and look for a higher target towards 7500 levels.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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