Bajaj Holdings & Investment Ltd: A promising path to 20% upside potential

Bajaj Holdings & Investment Ltd is a non-banking financial company with a primary focus on investments in assets and properties. As a registered Non-Banking Financial Institution – Investment and Credit Company with the Reserve Bank of India, the company plays a significant role in the financial landscape. Notably, Bajaj Holdings & Investment Ltd holds more than a 30% stake in both Bajaj Auto Ltd. and Bajaj Finserv Ltd.

A comprehensive analysis of the recent performance of Bajaj Holdings & Investment Ltd’s stock unveils a compelling trajectory. After reaching its peak at Rs 7640 on July 26, 2022, the stock retraced to stabilize near the 38.2% Fibonacci retracement level. This retracement aligns with the noteworthy upswing initiated in mid-January 2023, converging around Rs 5560.15.

The most recent trading sessions have witnessed a surge in buying interest, propelling the stock on an upward trajectory following a bullish crossover of the 5-13 and 5-26 Daily Moving Averages (DMA). A significant breakout trendline has emerged, connecting the high point of July 26, 2023 (Rs 7640) with the peak of August 31, 2023 (Rs 7494). This formation signifies an extended continuation price pattern spanning over 40 days.

In the last trading session, the stock experienced an upward move of 1.6%, positioning it just below the aforementioned breakout trendline. Confirmation of the breakout hinges on the stock’s daily close above the breakout level at Rs 7385, instilling a sense of optimism among investors.

Upon confirmation, the stock sets its sights on a potential target of Rs 8865, representing an approximate gain of 20% from the breakout threshold of Rs 7385. This scenario presents an enticing opportunity for both swing traders and long-term investors who closely monitor Bajaj Holdings & Investment Ltd’s performance. The company’s trajectory offers a promising outlook, brimming with potential for further upward gains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.