HDFC Bank Share Price is going to be bullish from Rs 1634 to 1733, know what the market master says
HDFC Bank’s share price has been a topic of interest among investors, especially as of September 16, 2024. As of today, the stock is trading at approximately ₹1,663. This figure is slightly down from its previous close of ₹1,667. The stock has shown a day range between ₹1,659 and ₹1,674, indicating some fluctuations in trading activity.
Main Points
The latest data reveals that HDFC Bank’s share price has experienced a slight decline of around 0.04% from the previous trading day. The market capitalization of HDFC Bank stands at approximately ₹12,68,243.6 crore, making it one of the largest private sector banks in India. The bank’s Price-to-Earnings (P/E) ratio is reported at 18.6, while the Price-to-Book (P/B) ratio is around 2.8.
From a technical standpoint, HDFC Bank is currently trading close to its 50-day moving average (DMA) and is positioned about 6% above its 200-day moving average. This suggests that while the stock is showing some resilience, it needs to maintain support around the 50 DMA to continue its upward trajectory. Analysts have noted that the stock is forming a base on its weekly chart and is approximately 7% away from a crucial pivot point.
The stock’s earnings per share (EPS) rank is currently at 60, which is considered fair, but there is room for improvement. The relative strength (RS) rating is at 29, indicating underperformance compared to other stocks in the market. This is compounded by a buyer demand rating of C+, suggesting that recent supply has outstripped demand.
Looking at the broader picture, HDFC Bank’s stock has had a mixed performance over the past year. It reached a 52-week high of ₹1,794 in July 2024 and a low of ₹1,363 earlier in February. The stock has shown a year-to-date return of approximately -11.24%, which is concerning when compared to the Nifty Bank index, which has risen by 7% in the same timeframe. Notably, competitors like State Bank of India and ICICI Bank have seen significant gains of 23% and 26%, respectively.
In August, there was a notable sell-off by mutual funds, with over ₹8,200 crore worth of shares sold. This marked the first monthly sell-off after seven consecutive months of buying. Major sellers included Kotak Mahindra Mutual Fund and SBI Mutual Fund, which reduced their holdings significantly. Despite this, some funds remain bullish on HDFC Bank, indicating a mixed sentiment in the market.
For traders and investors, understanding the support and resistance levels is crucial. The immediate support level for HDFC Bank is around ₹1,640, while resistance is seen at ₹1,670. If the stock can break through this resistance, it may pave the way for further gains. Analysts suggest keeping an eye on these levels as they could indicate potential entry or exit points for investors.
Looking ahead, analysts are cautiously optimistic about HDFC Bank’s prospects. The bank’s fundamentals remain strong, with a robust operating revenue of ₹463,969.97 crore on a trailing 12-month basis. The annual revenue growth of 99% is impressive, and the pre-tax margin of 19% reflects efficient management. However, the stock’s technical indicators suggest that it may face challenges in the short term unless it can regain momentum above key resistance levels.
Investors are advised to stay updated on market trends and news related to HDFC Bank. As the market evolves, the performance of HDFC Bank will be closely monitored, especially in light of recent sell-offs and changing investor sentiment.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
