Bajaj Finance, Bajaj Finserv shares rise up to 9%; here's why 

Shares of Bajaj Finance Ltd and Bajaj Finserv Ltd rose up to 9% in early deals today. The shares were among the top gainers on Sensex and Nifty today. The rally came after Citi maintained a bullish outlook on Bajaj Finance, reiterating a Buy call with a target price of Rs 8,150. The brokerage also placed the stock on a ’90-day catalyst watch,’ citing positive expectations for the company’s Q3 performance.

Bajaj Finance stock gained 6 per cent intraday to Rs 7,49.95 against the previous close of Rs 6936.65 on BSE.

Bajaj Finance's relative strength index (RSI) stands at 52.5, which signals the stock is neither oversold nor overbought on charts. A level below 30 is defined as oversold while a value above 70 is considered overbought. Bajaj Finance stock has a one-year beta of 1.1, indicating high volatility during the period

The large cap stock trades higher than the 5-day, 10 day, 20-day, 30 day, 50-day, 100-day and 200-day moving averages.

The stock has lost 1.32 per cent in a year and risen 5.72 per cent since the beginning of this year. Total 0.96 lakh shares of the firm changed hands amounting to a turnover of Rs 69.86 crore. The market cap of the firm rose to Rs 4.53 lakh crore on BSE.

On similar lines, shares of Bajaj Finserv climbed 8.92% to Rs 1,717.45 on BSE. Total 1.76 lakh shares of the firm changed hands amounting to a turnover of Rs 29.41 crore. The market cap of the firm rose to Rs 2.73 lakh crore on BSE.

Bajaj Finserv's relative strength index (RSI) stands at 38.6, which signals the stock is neither oversold nor overbought on charts. A level below 30 is defined as oversold while a value above 70 is considered overbought. Bajaj Finserv stock has a one-year beta of 1, indicating average volatility during the period

Bajaj Finserv shares are trading higher than the 5-day, 10 day, 20-day, 30 day, 50-day, 100-day and 200-day moving averages.

The brokerage highlighted marginal improvement in credit costs for Bajaj Finance, forecasting them to climb slightly to 2.2-2.25% in Q3. It also projected a 6% quarter-on-quarter (QoQ) and 7% year-on-year (YoY) growth in assets under management (AUM), led by strong performance across mortgages, sales financing, securities lending and new businesses.

"Key support is coming from segments like mortgage financing, sales financing, and new business ventures," Citi noted in its report. It also highlighted a marginal rise in credit costs, estimated between 2.2 to 2.5 percent.