HDFC, Bajaj Finance: Trading strategies for Bajaj, HDFC twins

Unless major resistances are crossed, both the HDFC and Bajaj twins are likely to face selling pressure on up moves

Share of HDFC twins are in spotlight following the MSCI concluded an outflow of approximately Rs 2,000 in the largest private bank, the HDFC Bank. Similarly, Bajaj twins drew attention after both Bajaj Finance and Bajaj Finserv exceeded their previous monthly highs, with robust volumes.

On Wednesday, shares of Bajaj twins were seen trading in green, despite benchmark indices encountered a negative volatile session. HDFC twins were seen trading in red.

Here’s the technical outlook of HDFC and Bajaj twins for upcoming sessions:- 

Bajaj Finserv Ltd (BAJAJFINSV)

Outlook: Needs to conquer the 200-DMA

While the shares of Bajaj Finserv have decisively crossed the 50-day moving average (DMA) and 100-DMA set at Rs 1,323 and Rs 1,380 levels, respectively, the current trend needs to conquer the 200-DMA placed at Rs 1,508 to enter a bullish bias.

If this happens, the chart structure would then form an “Inverse Head and Shoulder” breakout, leading to a rally in the direction of Rs 1,650, its next looming hurdle. CLICK HERE FOR THE CHART

Bajaj Finance Ltd (BAJFINANCE)

Outlook: Stability over the 200-DMA

Following a breakout of the “Double Bottom”, on the daily chart, the stock managed to conquer the sentimental hurdle of the 200-DMA existed at Rs 6,588. Going forward, stability over the 200-DMA shall trigger a positive bias to Rs 7,200 mark.

Immediate support for the upward bias is placed at Rs 6,400, which needs to be considered on the closing basis. The trend looks robust, and the stability over the 200-DMA shall spill more bullish strength. CLICK HERE FOR THE CHART

Housing Development Finance Corporation Ltd (HDFC)

Outlook: Overpower the selling hurdle

HDFC shares are facing hurdle in the range of Rs 2,800 to Rs 2,770 levels, continuing to see exaggerated selling pressure in the overbought category of the Relative Strength Index (RSI). 

To breakout on the upside and rally in the direction of Rs 3,000 levels, the stock must overpower this selling pressure range. The current support for the stock exists at Rs 2,650 and Rs 2,600 levels. CLICK HERE FOR THE CHART

HDFC Bank Limited (HDFCBANK)

Outlook: Consecutive closes over Rs 1,700

Shares of HDFC Bank are encountering selling pressure at Rs 1,700 levels, which needs to be battled with strong consecutive closings. When that occurs, the breakout may see a rally in the direction of Rs 1,900 levels.

On the downside, the support for the stock exists at Rs 1,600 level, which falls closer to its 50-DMA and 100-DMA, as per the daily chart. CLICK HERE FOR THE CHART