Bajaj has multiple stocks listed on the Stock exchange. Out of the entire fleet of listed companies, the most active and into the spotlight are Bajaj Finance and Bajaj Finserv. Both these are known as Bajaj brothers. They are a part of Nifty50 and form a major part of the Financial Services band under the index. These companies are generally seen having a great volatility in the open market. The companies show a movement of minimum 1.5 to 2% everyday.
The reason why they are called Bajaj Brothers is their movement patterns. If one stock is headed towards picking gains then the other one would definitely be seen in green. And if one would show higher losses in a session than the other one would also be suffering from the red zone. Thus their movements and volatility is not the only factor for calling them Bajaj Brothers.
Out of both the companies the stock price of Bajaj Finserv is more than double of Bajaj Finance. Bajaj Finserv works in financial services as well along with Bajaj Finance. However the majority of work is done into AMC, Wealth management, Lending activities and Insurance issuance and coverage. Simultaneously Bajaj Finance is actually a subsidiary company. Yes, most people don’t even know about it but it is a subsidiary company of Bajaj Finserv. Thus among the works of Bajaj Finserv, Bajaj Finance looks at consumer loans and commercial lending along with some assistance into the wealth management business. Thus both the companies work simultaneously and cause major gains for the Bajaj Holdings & Investments Limited.
Bajaj Finserv Latest Run and Stock Movements
Bajaj Finserv is Currently valued at Rs. 16700. The company has been able to gain almost 3000 Rs in the past 1 month. This has been possible only due to the high volatility in the stock. The other reason was the authorization to begin operations under the mutual funds segment. The company recently got permission from SEBI to initiate the mutual fund business. This means that not only Bajaj Finserv but Bajaj Finance would also benefit under the permission given the wealth management business.
Support and Resistance Levels
Let’s discuss the price movements and main resistance and support levels the colony has. Looking at the chart we can notice that there has been a constant pattern of upside or downside whenever the rally begins in Bajaj Finserv. Currently the trend is upwards due to the immense support from Nifty50. Currently the stock is trailing at 16700 Rs. Resistance levels for Finserv would be 17200 to 17500 Rs. On the other hand the major support level is 13975 Rs and following that 12600 Rs, However these are the far off support levels. The most recent support level will be 15460 Rs followed by 14475 Rs. Hence the stock has some closer support levels which can be broken soon if the Nifty50 collapses.
There are definitely high chances that the markets can go down due to the correction hopes. The major reason for downfall would be the profit booking and correction. The markets are right now over valued with a 1500 Points gai in the last 1 month. This also means that the markets can show high volatility in the near sessions. Hence one can always buy this share as it is the heart and soul of the profits earned by Bajaj Group. However one should trade with safety and maintain buy at dips started in the current market situation.
Bajaj Finance’s Support and Resistance Levels
Bajaj Finance has been having a dream run since the last 2 months. In the previous two months, the company has been having a gain of 2000 Rs. The current trade levels for the stock are 7500 Rs. The recent support levels for the company are 6078 Rs., 6351 Rs., 6546 Rs., 6735 Rs., 6970 Rs., 7130 Rs. and 7290 Rs. Thus such are the support levels of Bajaj Finance. On the other hand the major resistance levels are placed at 7700 Rs, 7850 Rs and 8000 Rs.
The major surprising factor for the stock is that it contains a very great movement in the entire day. It is among the favorite stocks for the traders. The reason is its fluctuation during the day. The stock performs a movement of minimum 150 Rs per day. This means one gets the opportunity to make profits from this heavy movement in the entire day.
One of the major news awaited for this stock is regarding the banking licenses. There are rumors that the company is set to get a banking license in near future as per the recommendation of the RBI committee. However, taking up this stock is a real risk to take. It went back to 3600 Rs from where it had gone to new highs of crossing 6000 Rs. Hence it takes no time to major major gains or suffer heavy losses in this particular stock.