- Summary:
- Bajaj Housing Share price has been on a sustained decline since it listed on the stock market in September 2024. Is there a way back up?
Bajaj Housing share price declined on Monday, going down by 2.5% to trade at Rs 116.65 at the time of writing. The stock has been sending mixed signals in recent days and has gained about 0.9% in the last five sessions. Notably, it has had a rough start to the year, extending a bearish run tracing back to December 2024.
The stock is down by 8.4% year-to-date and has not retested its post-IPO listing price of Rs 150. That means Bajaj Housing share price is 22% below the levels it listed in September 2024. However, it is alsonotable that the stock debuted at the stock market at a time when the broader Indian equities ecosystem was on a downtrend.
Foreign Institutional Investors (FII) have been liquidating their positions in the Indian stock market in droves amid weak earnings reports. Bajaj Housing (BSE: BAJHFL) reported That trend is likely to continue going by the Reserve Bank of India’s downward reversal of 2025 economic growth projection from 7.2% to 6.6% .
A Case For Bajaj Housing Share Price Reversal
However, despite the headwinds, the company still has a strong bottom line. Its earnings for the October-December 2024 quarter rose by Rs 548.02 crore. In addition, its debt-to-equity ratio was at 4.09, down from 5.37 for the quarter. That shows the company is now less reliant on debt to finance its operations.
Looking ahead, the RBI is largely expected to cut interest rates in the first quarter of 2025. That could boost investment sentiment in the Indian economy and the stock market. For Bajaj Housing, it could also bring in more borrowers and help boost the company’s earnings.
Bajaj Housing Share Price Prediction
The momentum on Bajaj Housing share price favours the sellers to stay in control if resistance persists at Rs 120.15. That will likely establish the first support at Rs 114.90 However, a stronger downward momentum could break below that level and aim at the second support at Rs 110.30.
On the other hand, action above Rs 120.15 will signal control by the buyers. Immediate resistance will likely come at Rs 123.65. The downward narrative will be invalid if the price breaks above that level. Also, an extended control by the buyers could take the price higher to test Rs 126.45.
