As Indian markets closed lower on Friday, amid concerns over overvalued stocks and a stronger US dollar, traders are eyeing several stocks poised for potential upside movement. The BSE Sensex dropped by 720.60 points (0.90%) to 79,223.11, while the NSE Nifty50 slipped by 183.90 points (0.76%) to 24,004.75. However, a few financial stocks, including Bajaj Finance, PB Fintech, and Bank of India, continue to generate buzz and may offer significant trading opportunities in the coming sessions.
Bajaj Finance: A Strong Buy with an Upward Momentum
Bajaj Finance has caught the attention of technical analysts due to its recent price action, which has reclaimed its 200-day Simple Moving Average (SMA) at Rs 7,006. This price recovery, coupled with a confirmed higher-top-higher-bottom pattern, suggests that the stock is poised for further gains. The Relative Strength Index (RSI), a momentum indicator, is showing positive signals, further reinforcing the stock’s upward trajectory.
Analyst Mileen Vasudeo from Arihant Capital Markets recommends a buy on Bajaj Finance, with a target range of Rs 8,200 to Rs 8,600, and a stop loss set at Rs 6,950. The stock is expected to continue outperforming the broader market, and traders could see substantial returns over the next few weeks.
PB Fintech: Positive Signals from Key Support Level
PB Fintech, the parent company of Policybazaar, has also displayed encouraging signs for potential upside movement. The stock recently found support at the 20-day SMA, situated at Rs 2,125, and has since surged to Rs 2,246. The positive RSI reading, along with the stock’s outperformance compared to the benchmark indices, points to strong bullish momentum.
Vasudeo suggests a buy on PB Fintech with a target price between Rs 2,439 and Rs 2,565. The recommended stop loss for this trade is Rs 2,100, providing traders with a manageable risk-to-reward ratio for short-term gains.
Bank of India: Double Bottom Formation Indicates Bullish Reversal
Bank of India is another stock that could attract attention in the upcoming trading session. The stock has formed a double-bottom pattern on the daily chart, a classic technical setup that often signals a potential trend reversal from bearish to bullish. With immediate resistance at Rs 108, a breakout above this level would likely trigger further upside momentum.
The RSI, which had recently dipped to a reading of 30 (indicating oversold conditions), has now turned positive, adding further weight to the bullish case. Vasudeo advises traders to buy Bank of India with a target range of Rs 116 to Rs 122, and a stop loss at Rs 98. If the stock manages to break through the key resistance at Rs 108, it could see a significant rally in the coming weeks.
Conclusion: Positive Outlook for These Financial Stocks
Despite a rough close for Indian markets last week, stocks like Bajaj Finance, PB Fintech, and Bank of India are showing promising technical signals that could offer good trading opportunities. With strong support levels and positive momentum indicators, traders may want to keep these stocks on their radar for the upcoming sessions.
The recommended strategy for each stock involves a buy position with a well-defined stop loss and a target price that suggests healthy potential gains. As always, market participants should conduct their own research and assess their risk tolerance before making any trades.
Related Topics:
The Financial Imperative of Sustainability: Shaping a Resilient Global Economy
Financial Experts Offer Tips for Smarter Financial Decisions in 2025
