The markets witnessed a strong rally in the last session, with the Sensex soaring 1,400 points and the Nifty climbing nearly 500 points, breaking above its 200-day moving average. Gains were driven by auto, IT, and financial stocks, while broader indices lagged.
As the earnings season begins, investors will closely monitor Q3 updates. Experts have identified Nifty’s resistance at 24,200 and support around 24,900.
Global cues remain mixed, with U.S. markets closing lower on the first trading day of 2025, while Asia-Pacific markets traded higher this morning. Key stocks to watch today include Avenue Supermarts, Bank of Maharashtra, and NHPC.
Shares of Bajaj Finance Ltd and Bajaj Finserv Ltd rose sharply by up to 9% in early trading today, emerging as top gainers on both the Sensex and Nifty indices. The surge came after global brokerage firm Citi reiterated a bullish outlook on Bajaj Finance, maintaining a “Buy” rating with a target price of ₹8,150. Citi also placed the stock on a ‘90-day catalyst watch,’ anticipating strong Q3 results for the company.
Bajaj Finance Performance
The stock of Bajaj Finance gained 6% intraday, reaching ₹7,749.95, compared to its previous close of ₹6,936.65 on the BSE.
Key performance indicators for Bajaj Finance include:
Relative Strength Index (RSI): At 52.5, indicating the stock is neither oversold nor overbought. (An RSI below 30 signals oversold, while above 70 signals overbought.)
Beta: At 1.1, reflecting higher-than-average volatility over the past year.
Moving Averages: Bajaj Finance shares are trading above the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages, signaling positive momentum.
The stock has lost 1.32% over the past year but has gained 5.72% since the beginning of 2025. A total of 0.96 lakh shares changed hands today, amounting to a turnover of ₹69.86 crore, while the company’s market capitalization increased to ₹4.53 lakh crore on the BSE.
Bajaj Finserv Performance
Similarly, Bajaj Finserv shares jumped 8.92% intraday, hitting ₹1,717.45 on the BSE.
Key performance indicators for Bajaj Finserv include:
Relative Strength Index (RSI): At 38.6, signaling the stock is neither oversold nor overbought.
Beta: At 1, indicating average volatility over the past year.
Moving Averages: The stock is trading above the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages, demonstrating strong momentum.
A total of 1.76 lakh shares were traded, amounting to a turnover of ₹29.41 crore, and the firm’s market capitalization rose to ₹2.73 lakh crore.
Citi’s Observations and Forecasts
Citi highlighted key factors driving the rally:
Asset Under Management (AUM) Growth: Expected to rise 6% quarter-on-quarter (QoQ) and 7% year-on-year (YoY) in Q3, driven by robust performance across segments such as mortgages, sales financing, securities lending, and new business ventures.
Credit Costs: Marginally higher, forecasted at 2.2–2.5%, but still manageable.
Supportive Segments: Mortgage financing, sales financing, and new business initiatives remain key growth drivers.
Market Outlook
Citi’s optimism on Bajaj Finance and Bajaj Finserv reflects confidence in their ability to deliver strong Q3 results, driven by diverse growth segments and operational efficiency. Both stocks are currently riding positive market sentiment, bolstered by their favorable technical indicators and anticipated financial performance.
Investors should closely monitor upcoming results and market movements to assess the sustainability of this rally.
