Bajaj Finance forms opening bearish marubozu candle

Bajaj Finance Limited forms opening bearish marubozu candle, on a weekly time frame. The opening bearish marubozu candle has no shadow extending from the open price end of the body.

Bearish marubozu candle indicates extreme bearishness. The expectation is that the sudden change in sentiment will be carried forward over the next few trading sessions and hence traders should look for selling opportunity.

According to the momentum indicators, the 14-period weekly RSI is currently quoting at 53.77 level and it has recently given negative crossover. Moreover, the stock has closed below its crucial short-term moving averages, i.e. 20-day EMA and 50-day EMA.

In the near-term, the stock is likely to face immediate resistance at Rs. 2,607.40, which is 20-day EMA. While on the downside, 100-day EMA is likely to act as strong support, which is currently quoting around Rs. 2,509, failure to hold this support would lead to further correction up to the level of Rs. 2,375.

On Friday, the stock of Bajaj Finance closed at Rs. 2,557.50 per share, dipped by 1.90 per cent. The stock opened at Rs. 2,631 per share and hit an intraday high of Rs. 2,631 and a low of Rs. 2,508 per share on BSE.