Accumulate Bajaj Finance, may test Rs 1155-1175

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National Head-Derivative Desk at Aditya Birla Money told CNBC-TV18, "Two main reasons for picking up or choosing Bajaj Finance . One, all the non-banking finance companies (NBFC) have started seeing some buying coming back in whether it is Shriram Transport Finance Corporation ; for that matter, in Bharat Financial Inclusion , on Friday we saw a huge surge in volumes. But both of them have seen that happening on short-covering whereas Bajaj Finance, we have seen an accumulation of open interest happening towards the long side. So, in the last one week, total 8 percent a accumulation has happened." 

 

"And if you see the technical levels of Bajaj Finance also it has been forming a very strong bottom now at Rs 1,095-1,100. That band, every time it tests, it has tried to rebound from that zone. So, we feel that Bajaj Finance should be accumulated and with a stoploss of Rs 1,095 which is a strong bottom and we expect it to now move towards that Rs 1,155-1,175 zone and a good appreciation is expected in next 2-3 trading sessions. 

 

So, within the NBFC space, Bajaj Finance is a good bet for the traders for the next 2-3 trading sessions," he added. "Another midcap stock where we have seen accumulation of open interest happening, Godrej Industries is not a stock which you will see suddenly open interest adding up of 20-30 percent in a day.