- Summary:
- Bajaj Housing share price has been on a sharp decline for over three weeks. We discuss the potential for recovery in the coming days.
Bajaj Housing Finance share price consolidation has been ongoing for more than three weeks, and the trend is likely to continue in the near-term. The stock was down by 0.5% as of this writing and seemed to be on course to close the year with -15% in returns.
Why is Bajaj Housing Share Price Down?
Technically, its year-to-date figures do not reflect the true picture of the company, considering that it got listed in September 2024. Bajaj (BSE: BAJHFL) reported a profit of Rs 5.46 billion in the third quarter of the year, equivalent to a 20.95% YoY growth. It generated revenues of Rs 23.98 billion, up 25.7% YoY.
Therefore, the prolonged depression of its share price is not a result of a company-specific problem, but a result of investor readjustment to the stock market. Notably, the decline began in the lead-up to the end of the lock-in period for IPO investors, which began on December 12.
Pathway to Recovery
The share price was at Rs 127.25 last the time of writing. That was below key moving averages, including the 21-EMA and 50-EMA on the daily chart. However, it is still about 81% above its IPO issue price of Rs 70. That could extend the consolidation period, as many IPO investors are still in profit.
On the upside, however, IPO investors only account for 2% of the company’s equity. Therefore, most investors could hold on to their assets ahead of the next quarterly results announcement in January, providing a pathway to recovery by Bajaj Housing share price in the medium term.
Bajaj Housing Finance Stock Price Prediction
Bajaj Housing Finance share price pivots at Rs 128.00 and the downside will prevail if resistance persists at that level. That could see the stock move lower and find the first support at Rs 126.55. Extended control by the sellers will break that support and potentially take BAJFHL to test Rs125.45.
Conversely, moving above Rs 128.00 will favour the buyers to take control. Immediate resistance will likely come at Rs 129.15. The downside thesis will be invalid if the price breaks above that level. In addition, a stronger upside momentum could extend gains and test the second resistance at Rs 130.25.