Bajaj Finance has been in a sideways consolidation since Sep 2021, where it had completed a Major top from March 2009 lows (as per my counts).
So, there are two Possibilities from here:
P1. Major top -> sideways action -> Finall blow-out correction/ capitulation and then a start of next leg up.
P2. Major top -> sideways consolidation for 4 years (till Jan 2025) -> Next leg up started
P1: Reason could be re-rating of P/BV (which stands at 6.6), to industry avearge of around 4. Bajaj has been growing fast on account of unsercured lending. There could be bad assets building and the bubble can burst anytime, leading to the de-rating (P.S.: It has already de-rated from P/BV of 12.3 in Sep 2021 to 6.6 currently)
Elliot Counts: The correction from Sep 21 to June 22 was a W. the entire upmove from June 22 till date has been an overlapping corrective move in an X. What is to follow is Y, which should ideally re-test W at 5300 (that's a 43% fall)
P2: In this case we have completed the correction from Sep 21 till Jan 25 and started a new move up.
The five wave completion is just the Wave 1, and what is to follow is Wave 2, which can correct 38% to 50% of Wave 1 (i.e. from Jan 25 lows till the highs). Expect min 8300 to come, which again is a more than 10% correction.
Good thing is in both cases, we get a good enough correction to trade. All the best!
So, there are two Possibilities from here:
P1. Major top -> sideways action -> Finall blow-out correction/ capitulation and then a start of next leg up.
P2. Major top -> sideways consolidation for 4 years (till Jan 2025) -> Next leg up started
P1: Reason could be re-rating of P/BV (which stands at 6.6), to industry avearge of around 4. Bajaj has been growing fast on account of unsercured lending. There could be bad assets building and the bubble can burst anytime, leading to the de-rating (P.S.: It has already de-rated from P/BV of 12.3 in Sep 2021 to 6.6 currently)
Elliot Counts: The correction from Sep 21 to June 22 was a W. the entire upmove from June 22 till date has been an overlapping corrective move in an X. What is to follow is Y, which should ideally re-test W at 5300 (that's a 43% fall)
P2: In this case we have completed the correction from Sep 21 till Jan 25 and started a new move up.
The five wave completion is just the Wave 1, and what is to follow is Wave 2, which can correct 38% to 50% of Wave 1 (i.e. from Jan 25 lows till the highs). Expect min 8300 to come, which again is a more than 10% correction.
Good thing is in both cases, we get a good enough correction to trade. All the best!
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Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.