Understanding Gopal Kavalireddi's Technical View on Bajaj Finance
Some of the insights on Bajaj Finance, a prominent player in the financial services arena, haven't changed significantly in the last year. Mr. Gopal Kavalireddi, a seasoned financial analyst, provided a comprehensive view on Bajaj Finance. Given the recent movements in the stock, we have re-evaluated the situation from a technical perspective at the current levels, which stand at Rs.2542 as of March 27th, 2020.
Technical Rebounds and Breakdowns
Over the last 8 years, Bajaj Finance has shown remarkable growth, more than a 100-bagger from initial investment levels. However, a significant event occurred recently - the stock price broke below the Ichimoku cloud on the weekly timeframe for the first time. Normally, the Ichimoku cloud acts as a strong support level. Yet, this is now being seen as a potential reversal or retracement event.
Significance of Key Levels:
The stock completed a 50% retracement level at Rs.2513, gone slightly below before bouncing. The next support level based on the retracement is at Rs.1946.Noiseless Charts and Technical Indicators
The noiseless charts bring further bad news for investors. A clear consensus indicates a target around Rs.1345, which is possible in the short to medium term. There is also an intermediate target around Rs.1920, nearly at the level of a 2-year low and the 61.8% retracement.
Important Consideration: This view stands negated if the stock starts trading above Rs.2950 levels on daily charts.
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