Bajaj Finance Ltd Hits Intraday Low Amid Price Pressure on 20 Jan 2026

Intraday Performance and Price Movement

The stock of Bajaj Finance Ltd, a leading Non Banking Financial Company (NBFC), underperformed significantly during the trading session. After two consecutive days of gains, the share price reversed course sharply, declining by 3.88% on the day and hitting an intraday low of Rs 931.65, marking a 4.07% fall from its previous close. This intraday low represents the weakest level seen during the session, signalling heightened selling pressure.

Compared to the broader NBFC sector, which itself declined by 2.01%, Bajaj Finance’s performance was notably weaker, underperforming the sector by 1.93%. The stock also lagged behind the Sensex, which fell by 1.43% on the same day. Bajaj Finance’s one-day performance of -4.33% starkly contrasts with the Sensex’s -1.42%, underscoring the stock’s relative vulnerability amid the current market environment.

Technical Indicators and Moving Averages

From a technical standpoint, Bajaj Finance is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across multiple timeframes suggests a sustained downward momentum. The breach of these critical support levels often signals caution among traders and investors, contributing to the intraday price pressure observed.

The stock’s recent trend reversal after two days of gains further emphasises the shift in market sentiment. The inability to sustain upward momentum has led to increased selling interest, pushing the price lower during the session.

Market Context and Broader Indices

The decline in Bajaj Finance’s share price occurred against a backdrop of significant weakness in the broader market. The Sensex opened flat but quickly reversed, plunging by 1,153.05 points to close at 82,054.33, a 1.43% drop. This marked the third consecutive weekly decline for the Sensex, which has lost 4.32% over the past three weeks. The index is currently trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating some longer-term support.

The NBFC sector, to which Bajaj Finance belongs, also faced selling pressure, declining by 2.01%. This sectoral weakness compounded the stock’s intraday losses, reflecting cautious sentiment towards financial stocks amid prevailing market conditions.

Performance Comparison Over Various Timeframes

Examining Bajaj Finance’s performance over different periods reveals a pattern of relative underperformance in recent months. The stock’s one-week decline of 2.08% slightly exceeds the Sensex’s 1.87% fall. Over one month, Bajaj Finance has dropped 7.83%, more than double the Sensex’s 3.37% decline. The three-month performance shows a sharper contrast, with Bajaj Finance down 14.05% compared to the Sensex’s 2.72% fall.

Despite these recent setbacks, the stock has delivered strong returns over longer horizons, with a one-year gain of 24.92% versus the Sensex’s 6.48%, a three-year gain of 58.61% against the Sensex’s 35.38%, and an impressive ten-year return of 1547.09% compared to the Sensex’s 241.07%. However, year-to-date figures show a decline of 5.83% for Bajaj Finance, outpacing the Sensex’s 3.70% fall, indicating a challenging start to the current year.

Mojo Score and Rating Update

Bajaj Finance currently holds a Mojo Score of 71.0, with a Mojo Grade of Buy. This represents a downgrade from its previous Strong Buy rating, which was revised on 21 Jan 2025. The downgrade reflects a reassessment of the stock’s near-term outlook amid evolving market conditions. The company’s Market Cap Grade remains at 1, indicating its status as a large-cap entity within the NBFC sector.

Immediate Pressures and Market Sentiment

The intraday low and overall decline in Bajaj Finance’s share price can be attributed to a combination of factors including the broader market sell-off, sectoral weakness, and technical pressures. The stock’s failure to hold above key moving averages has likely triggered short-term selling. Additionally, the ongoing correction in the Sensex and the NBFC sector has weighed on investor sentiment, contributing to the price pressure.

Market participants appear cautious, as reflected in the stock’s underperformance relative to both the sector and the benchmark index. The sharp fall in the Sensex and the three-week consecutive decline have created an environment of risk aversion, which has impacted large-cap financial stocks such as Bajaj Finance.

Overall, the stock’s intraday low of Rs 931.65 and the 3.88% day decline highlight the immediate challenges faced amid a weak market backdrop and sectoral headwinds.

Summary of Key Metrics

Bajaj Finance Ltd’s day change of -3.88% and intraday low of Rs 931.65 stand out against the Sensex’s -1.43% fall and the NBFC sector’s -2.01% decline. The stock’s trading below all major moving averages signals technical weakness. Its Mojo Score of 71.0 and Buy rating reflect a tempered outlook following a downgrade from Strong Buy in early 2025. The stock’s recent relative underperformance contrasts with its strong long-term returns, underscoring the current market pressures.

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