Bajaj Finserv Cup & Handle at Play! Will It Break Out?📌 Setup Overview:
Stock in a 4-year trading range 📊 and currently trading just below this range.
Cup and Handle formation ☕ along with a potential VCP setup (Volatility Contraction Pattern).
No left-side resistance—unlike stocks that fell 40-50%, there are fewer trapped buyers here.
Volume gradually increasing 📈, a necessary condition for a strong breakout.
Finance sector showing strength 💰—index is trading above key DMAs and broke out of a base first.
Stock is trading above key DMAs, adding technical confluence.
🎯 Trade Plan:
✅ Entry: Above ₹1,941 🔼
✅ Immediate Resistance: ₹2,035 (Watch Price Action at this level)
✅ Stop-Loss (SL - Closing Basis): ₹1,547.80 (20.29% below entry)
✅ Target (Tentative Positional): ₹2,510.30 🎯
📌 Risk-to-Reward (R:R) & Percentages:
SL Percentage: ~20.29%
Target Percentage (from ₹1,941): ~29.34%
R:R Ratio: 1:1.44
⚠️ Key Risks & Considerations:
1️⃣ Immediate Resistance at ₹2,035 – Monitor price action here. If rejected, wait for a re-entry after confirmation.
2️⃣ Deep Stop-Loss (~20%) – Adjust position sizing accordingly. Do not go all-in at once.
3️⃣ Market Structure: If broader markets remain weak, reassess if Bajaj Finserv is showing relative strength or struggling.
📌 Final Thoughts:
Wait for breakout confirmation above ₹1,941 with volume. 🚀
Monitor PA at ₹2,035—strong close above this strengthens the setup.
Stick to SL discipline and trail as stock moves higher.
📢 Disclaimer: This is for educational purposes only. Not financial advice. Always manage risk and do your own research before making any trades.
🚀 Trade smart & stay disciplined!
