Bajaj Finance Ltd Technical Momentum Shifts Signal Bullish Outlook

Technical Momentum and Indicator Overview

The latest technical assessment of Bajaj Finance Ltd reveals a comprehensive improvement in momentum indicators across multiple timeframes. The stock’s current price stands at ₹1,031.05, marginally up 0.18% from the previous close of ₹1,029.15, with intraday highs touching ₹1,045.90. This price action is supported by a bullish daily moving average alignment, indicating sustained upward momentum in the short term.

On the weekly and monthly charts, the Moving Average Convergence Divergence (MACD) remains bullish, reinforcing the positive trend. The weekly MACD confirms momentum strength, while the monthly MACD supports a longer-term uptrend. However, the Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no definitive signal, suggesting the stock is neither overbought nor oversold, which could imply room for further upside without immediate risk of a reversal.

Bollinger Bands also reflect a bullish stance on weekly and monthly charts, with the price trending near the upper band, indicating strong buying interest. The daily moving averages corroborate this, with short-term averages positioned above longer-term ones, a classic bullish configuration.

Mixed Signals from Other Technical Tools

While most indicators point to strength, some technical tools present a more nuanced picture. The Know Sure Thing (KST) indicator is bearish on the weekly timeframe but bullish monthly, suggesting some short-term caution amid a longer-term positive outlook. Similarly, Dow Theory assessments show a mildly bullish weekly trend but a mildly bearish monthly trend, indicating that while recent price action is encouraging, the broader monthly trend requires monitoring for confirmation.

On-Balance Volume (OBV) analysis reveals no clear trend on the weekly scale and a mildly bearish signal monthly, hinting at some divergence between price gains and volume support. This divergence could warrant attention as volume often precedes price movements, and a lack of volume confirmation might temper enthusiasm.

Price Performance Relative to Sensex

Bajaj Finance Ltd’s price momentum is further validated by its impressive returns compared to the Sensex benchmark. Over the past week, the stock surged 1.80%, significantly outperforming the Sensex’s 0.02% gain. The one-month return stands at 11.12%, eclipsing the Sensex’s 2.15%. Year-to-date, Bajaj Finance has delivered a 4.50% gain while the Sensex declined by 2.26%, underscoring the stock’s resilience amid broader market volatility.

Longer-term returns are even more compelling. Over one year, the stock appreciated 22.89%, more than double the Sensex’s 10.60%. Over three and five years, the stock’s cumulative returns of 66.10% and 91.52% respectively far outpace the Sensex’s 39.74% and 67.42%. Remarkably, over a decade, Bajaj Finance has delivered a staggering 1,651.09% return compared to the Sensex’s 255.80%, highlighting its status as a market leader within the Non Banking Financial Company (NBFC) sector.

Mojo Score Upgrade and Market Capitalisation Insights

Reflecting the technical improvements and strong price momentum, MarketsMOJO has upgraded Bajaj Finance Ltd’s Mojo Grade from Hold to Buy as of 23 February 2026. The company’s Mojo Score stands at a robust 72.0, signalling favourable prospects based on a combination of fundamental and technical factors. The Market Cap Grade remains at 1, indicating a large-cap status with significant market liquidity and investor interest.

This upgrade aligns with the bullish technical trend shift and the company’s consistent outperformance relative to the broader NBFC sector and the Sensex. Investors may view this as a confirmation of Bajaj Finance’s leadership position and growth potential within the financial services space.

Technical Trend Summary and Implications for Investors

The transition from a mildly bullish to a bullish technical trend is supported by multiple indicators, including MACD, Bollinger Bands, and moving averages. The absence of RSI extremes suggests the stock is not currently overextended, providing a favourable risk-reward profile for investors considering entry or accumulation.

However, the mixed signals from KST, Dow Theory, and OBV warrant a cautious approach, especially for short-term traders. These indicators suggest that while the overall momentum is positive, some underlying volume and trend confirmation remain pending. Investors should monitor these signals closely for any signs of weakening momentum or divergence.

Given the stock’s strong relative performance and technical upgrade, Bajaj Finance Ltd appears well-positioned to continue its upward trajectory, supported by solid fundamentals and market leadership in the NBFC sector.

Conclusion: A Bullish Outlook with Vigilance Recommended

Bajaj Finance Ltd’s recent technical parameter changes highlight a clear shift towards a bullish momentum, supported by strong MACD and moving average signals. The stock’s impressive outperformance against the Sensex and its upgrade to a Buy rating by MarketsMOJO further reinforce its appeal to investors seeking growth in the NBFC sector.

Nonetheless, some caution is advised due to mixed signals from volume-based and trend-following indicators. Investors should continue to monitor these technical factors alongside fundamental developments to capitalise on the stock’s potential while managing risk effectively.

Overall, Bajaj Finance Ltd remains a compelling candidate for inclusion in portfolios targeting quality NBFC stocks with strong technical and fundamental underpinnings.

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