Bajaj Housing Finance Share Price down to Rs 155 or bullish till Rs 170, know market views
Bajaj Housing Finance Ltd. (BHFL) experienced a notable decline in its share price, closing at ₹173.69, a drop of 4.29% from the previous day’s close of ₹181.48. This downturn interrupted a two-day rally that had seen the stock rise significantly since its recent IPO. Investors are now keenly observing critical support and resistance levels as the market reacts to this shift.
Main Points
The share price of Bajaj Housing Finance has been quite dynamic since its initial public offering (IPO). The stock debuted at a remarkable premium, listing at ₹149.00, which was a 114% increase from its issue price of ₹70. Since then, it has seen fluctuations, reaching a high of ₹188.45 and a low of ₹171.16 on September 18. The trading volume for the day was substantial, with over 16 million shares exchanged.
As of the latest trading session, Bajaj Housing Finance boasts a market capitalization of approximately ₹144,650 crores. The company’s price-to-earnings (P/E) ratio stands at 82.71, while the price-to-book (P/B) ratio is reported at 6.1 times the estimated figures for FY26. These metrics suggest that while the stock has performed well post-IPO, it may be considered overvalued by some investors based on traditional valuation standards.
Technical Analysis: Important Levels
For traders and investors looking to navigate the current market conditions for Bajaj Housing Finance, understanding key technical levels is crucial:
- Resistance Levels: The immediate resistance level is identified around ₹181.48, which was the previous closing price before the drop. A breach above this level could signal renewed bullish momentum.
- Support Levels: On the downside, critical support is observed at ₹171.16, which represents the day’s low on September 18. If the stock falls below this level, it may trigger further selling pressure.
- 52-Week Range: The stock has traded between ₹147.00 and ₹181.48 over the past year, indicating potential volatility as it approaches these boundaries again.
Market analysts have mixed feelings about Bajaj Housing Finance’s future performance following its IPO success. Some analysts maintain a bullish outlook based on strong fundamentals and growth prospects in the housing finance sector. Morgan Stanley has given an ‘Overweight’ rating with a target price of ₹9,000 for its parent company, Bajaj Finance Ltd., which reflects confidence in the overall Bajaj group’s financial health.
Conversely, others caution about potential corrections following such rapid gains post-IPO. The anticipated rate cuts from the Reserve Bank of India could provide further support for housing finance companies like Bajaj Housing Finance, as lower interest rates typically stimulate demand for home loans.
Broader Market Context
The broader market context also plays a significant role in shaping investor sentiment towards Bajaj Housing Finance. On September 18, both Sensex and Nifty indices faced downward pressure after a brief rally, influenced by global market trends and economic indicators such as inflation data from the U.S.
