The stock of Bajaj Finserv (₹1,919.20), which has been oscillating in the ₹1,940-2,060 range for several weeks, slipped below the support at ₹1,940 on August 1. Since then, it has been trading below this, increasing the probability of further fall.
From the current level, the stock is likely to fall to ₹1,800, its nearest support. Next support is at ₹1,750.
On the other hand, if the stock recovers from the current level, it will face a barrier at ₹2,000 where both 21- and 50-day moving averages coincide. A breakout of this can lift the stock to ₹2,060. However, given the prevailing conditions, the chance for a rise above ₹2,000 is less likely.
Given the aforementioned factors, traders can consider buying a put option.
Strategy: We recommend buying the 1900-put option of August expiry, which closed at ₹30.15 on Friday. As the market lot of derivative contracts of Bajaj Finserv is 500 shares, the outflow in this strategy will be ₹15,075.
Place an initial stop-loss at ₹15. When the option premium rises to ₹50, tighten the stop-loss to ₹35. Book profits at ₹60.
Traders who can take higher risk can opt to short Bajaj Finserv August futures (₹1,922.40). Go short with a stop-loss at ₹1,970. When the contract declines to ₹1,860, alter the stop-loss to ₹1,900. Tighten the stop-loss to ₹1,860 when the contract slips to ₹1,830. Book profits at ₹1,810.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.
Published on August 9, 2025
