HDFC Bank can rally 10% if it conquers Rs 1,550-hurdle, chart indicates

The trend seems buoyant on the weekly chart with the 200-WMA, placed at Rs 1,285-level, acting as a major support for the stock.

Shares of HDFC Bank traded on a volatile note this Monday, even as the private lender posted a 20 per cent YoY rise in net profit in Q2FY23. The July-September quarter numbers were mostly in line with analysts’ expectations, which anticipated a strong growth in Net Interest Margin, at 18.9 per cent.  READ MORE

Thus far this calendar year, HDFC Bank has witnessed a wild ride on the bourses in the backdrop of the proposed merger with HDFC. After hitting a 52-week low in March 2022, the stock reversed sharply and rallied near its all-time high of Rs 1,706 in early April 2022 only to plunge to fresh lows in June. The erratic stock movement has dented investor sentiment at the counter.


 

Technically, the trend seems buoyant on the weekly chart with the 200-weekly moving average (WMA), placed at Rs 1,285-level,  acting as a major support for the stock. On the higher side, Rs 1,550 remains the significant barrier.

The Bollinger Band, a technical tool developed to comprehend the price volatility to direct the trend suggests immediate support of its middle band of 20-simple moving average (SMA) at  Rs 1,423 level.  The stock has a hurdle at Rs 1,537 level, which is the upper-end of the Bollinger Band (UBB). 

The support, categorised, as the lower-end of the Bollinger Band (LBB) comes at Rs 1,309 level, near its 200-WMA.

Thus, a close over UBB or Rs 1,550 would prompt a breakout texture and the stock might rally to a new historic peak of Rs 1,710 level. A 10 per cent rise for the stock. CLICK HERE FOR THE CHART