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Today, we shall delve into three stocks, which are Bajaj Finance (NS:), ITC Ltd (NS:), and Axis Bank (NS:). However, I will only look at Bajaj Finance via this article. This is as I have chosen to look at ITC and Axis Bank via a YouTube video attached below. Hence, check out the video to see how the stocks will perform in the coming weeks.
Now I chose to focus on Bajaj Finance as the equity has shown tremendous strength in Monday’s trading session. I say this as on Monday, the market as a whole witnessed a huge sell-off. However, this was not the case with Bajaj Finance as the equity managed to hold onto the support zone at Rs 7,700. Moreover, it also closed the day with a neutral candle. Thus, due to this, I believe the equity does deserve a second look.
Now, when we turn our focus onto the technicals of Bajaj Finance, we see that the stock is actually at a pivotal crossroads. This is as on the weekly chart, the stock has formed a bearish top. While, on the daily chart, the stock is in neutral territory. I say this as from the past few sessions the equity has been holding the support at Rs 7,700 with weak to neutral candles. Thus, owing to this, I believe equity has two pathways ahead.
In the first scenario, which is a more likely one. The equity may have a minor dead cat bounce, which will let it reach the resistance zone at Rs 8,060. However, upon reaching this zone, I expect the equity to resume its downtrend. This, in turn, will result in a longer-term decline until the quant support level at Rs 7,450. Whilst, on the other hand, in the second scenario, if the equity does hold the support at Rs 7,700. Then it will begin a box-range pattern that will oscillate between this support and the resistance at Rs 8,060.
In summation, my view on Bajaj Finance is bearish. This is as all the charts plus data suggest that the equity is coming in for a short-term downward move. Thus, owing to this I believe there is a higher chance of the first scenario playing out. This in turn will give us a decline to Rs 7,450. Obviously, along the way, there will be some glimmers of hope, but I believe these will be well-laid traps. This is as the broader price action signals a challenging uphill climb for the equity at the moment. Therefore, I would exercise caution with regard to equity purchases in this scenario. However, if Bajaj Finance were able to reclaim the Rs 8,200 resistance level with a bullish pattern on the weekly chart, then the bears would be out of luck.
Lastly, do take a moment to watch the attached YouTube video, where I provide insights into what you can expect from ITC and Axis Bank. This is as staying informed is key to navigating the ever-changing market dynamics.
Happy trading!
Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgement before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.
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