The recent price action in Bajaj Finance Limited indicates a classic Elliott Wave structure unfolding on the weekly chart. After completing a strong five-wave impulsive rally forming Wave (I) at ₹1102.50, the stock has now entered a corrective phase, labeled as Wave (II).
Current trend: Short-term Weakness, long-term strength
Following the peak at ₹1102.50, Bajaj Finance has started to move lower as part of this broader correction. In the near term, the stock is expected to decline slightly further toward the ₹827 level. This move would complete three equal swings within Wave W, a common corrective pattern in Elliott Wave analysis. However, this is not the end of the correction. After reaching the ₹827 zone, a temporary bounce is likely before the stock resumes its downward move in the next leg of Wave (II).
The broader Wave (II) correction is expected to extend deeper into the ₹681–₹551 range. This zone is technically significant because it represents a 38.2% to 50% Fibonacci retracement of the entire Wave (I) rally. Such retracement levels are commonly seen in strong trending stocks before the next major upward move begins.
What this means for investors
Despite the ongoing correction, the overall structure of Bajaj Finance Limited remains bullish. Wave (II) is typically followed by Wave (III), which is often the strongest and most explosive phase in an Elliott Wave cycle.
The key takeaway here is patience. Short-term downside should not be mistaken for a trend reversal. Instead, it may present a strategic accumulation opportunity for long-term investors.
Conclusion
Bajaj Finance is currently undergoing a healthy correction after a strong rally. With downside targets between ₹681 and ₹551, investors should watch for signs of reversal in this zone. Once Wave (II) completes, the next bullish phase could drive the stock to new highs, reinforcing its long-term growth potential.
Source: https://www.fxstreet.com/news/bajaj-finance-big-buying-opportunity-ahead-202603180923
