Bajaj Finserv Ltd. chart analysis

٢ يناير

The chart of Bajaj Finserv Ltd. (NSE) on a Daily frame, showing price movement, volume, and two key indicators – MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index). It highlights price divergences, key support and resistance zones, and a potential bullish reversal.

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🔍 Key Chart Feature and Pattern Observation:
1️⃣ Support & Resistance:
- Support: ₹1,523.25 (blue horizontal line).
- Resistance: ₹1,700.65 (magenta horizontal line).

2️⃣ Bullish & Bearish Divergence:
- Bearish Divergence: Observed on the MACD during the price rise in August-September.
- Bullish Divergence: Observed in December, indicating a potential trend reversal.

3️⃣ Volume Spike:
- A significant volume increase during the recent price surge suggests strong buying interest.

4️⃣ Price Action:
- The price has bounced off the support zone and is approaching the resistance zone.

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📈 Indicator Analysis:
1️⃣ MACD:
- Bearish Divergence: Previously indicated weakness, leading to a downtrend.
- Bullish Divergence: Recently formed, suggesting potential upward momentum.
- The MACD histogram has turned green, indicating positive momentum.

2️⃣ RSI:
- RSI is currently at 33, suggesting it is recovering from an oversold zone.
- A rising RSI supports the bullish sentiment.

3️⃣ Volume:
- A spike in volume during the upward price movement signals buying strength.

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📌 Key Levels or Price Levels:
- Support: ₹1,523.25
- Resistance: ₹1,700.65
- Intermediate Resistance: ₹1,690.50

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📊 Overall Summary:
- The chart indicates a potential bullish reversal supported by a bullish divergence in MACD and rising RSI.
- The recent price surge, accompanied by high volume, suggests strong buying interest.
- If the price sustains above ₹1,690.50, it could break through the resistance at ₹1,700.65.

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📚 Trading Strategy:
1️⃣ For Long Entry:
- Enter near ₹1,562.05 with a stop-loss at ₹1,523.25.
- Target price: ₹1,700.65

2️⃣ For Short Entry:
- If the price fails to break ₹1,690.50, consider shorting with a stop-loss at ₹1,700.65.

3️⃣ Confirmation Point:
- Wait for confirmation with price action or candlestick patterns near key levels.

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✅ Conclusion:
The chart signals a bullish reversal with confirmation from the MACD bullish divergence and improving RSI levels. Traders can look for buying opportunities near support levels with proper risk management. A breakout above ₹1,700.65 will strengthen the bullish momentum further. 🚀