Bajaj Housing Finance share price closed 2.4 percent lower on Friday amid sell-off in Indian equity markets. While global markets are sideways with investors concerned about US Federal Reserve's policy and other global issues, Indian markets faced selling pressure for the whole week. The current bearish sentiment in the Indian markets has led many stocks to their yearly lows. NSE Nifty has just declined by 5.3 percent over last one month and there is room for furhter correction. As per reports, NSE Nifty is around 1,200 points away from bear market levels. Over the last six months, NSE Nifty has declined 12.5 percent over last six months. Bajaj Housing Finance launched its IPO in September 2024 and the stock touched all-time high at Rs 188 compared to Rs 70 IPO price. While many investors made decent profit in this counter, the recent decline in the stock markets has led to losses on Bajaj Housing Finance as well.

Given its strong financials and market positioning, TopNews Team explores BHFL’s performance, analyst insights, and technical indicators, providing investors with an informed perspective. The stock is good long term bet but short term traders and investors should watch this counter carefully as it could decline further.

Technical Analysis: Candlestick Patterns

Examining BHFL’s daily candlestick chart, the following patterns emerge:

Doji Candlestick Formation: Signals market indecision, suggesting a possible trend reversal.
Bullish Engulfing Pattern: Indicates strong buying interest, which could trigger an upward momentum.
Hammer Pattern: Found at the end of a downtrend, signaling a potential bullish reversal.
These chart signals suggest investors should monitor volume trends and price action confirmation for potential breakout movements.

Fibonacci Retracement Levels

Fibonacci retracement levels help identify key support and resistance points in price movements.

Rs 111.23 (23.6%) – Minor support/resistance level
Rs 115.61 (50.0%) – Key midpoint for trend confirmation
Rs 117.77 (61.8%) – A critical level to watch for breakouts

Support and Resistance Levels

Key support and resistance zones help traders identify breakout or pullback opportunities.

Major Support (Rs 103.10): Strong downside protection, ideal for accumulation.
Current Support (Rs 107.65): If the stock holds this level, it could act as a launchpad for recovery.
Resistance (Rs 115.61 & Rs 125.00): These levels will test buyer strength and determine future breakout potential.

Competitive Landscape

Bajaj Housing Finance competes with several key players in the housing finance industry:

LIC Housing Finance: One of India’s largest housing finance lenders, catering to retail and corporate segments.
PNB Housing Finance: A significant mortgage player, offering home loans, loan against property, and construction finance.
While LIC Housing Finance has a larger asset book, BHFL’s agility and focus on high-growth segments give it an edge over competitors.

Financial Performance Overview

BHFL has demonstrated strong revenue and profit growth, reinforcing its standing in the industry.

Revenue Growth: The company reported an annual revenue of Rs 7,617 crore, marking a 34% year-on-year increase.
Profitability: The Profit After Tax (PAT) stood at Rs 1,731 crore, reflecting a 38% growth over the previous fiscal year.
Debt-to-Equity Ratio: BHFL’s debt-to-equity ratio stands at 0.3, up from 0.1 last year, showcasing a prudent capital structure to support expansion.
This financial stability places BHFL in a strong position to capture further growth in India’s housing finance market.

Investment Outlook and Conclusion

BHFL presents a compelling case for investors, backed by robust financial performance, strategic expansion, and positive technical indicators.

Short-term View: Traders should watch for support confirmation at Rs 107.65 and resistance breakout at Rs 115.61.
Medium-term Outlook: If price sustains above key Fibonacci levels, it may signal continued bullish sentiment.
Long-term Investment: The stock remains well-positioned for sustainable growth in the housing finance sector, though valuation concerns persist.
For investors seeking exposure to housing finance, Bajaj Housing Finance is a stock to watch closely in the coming months.