HDFC & HDFC Bank, PNB & PNB Housing Fin: Strategies for 'twin' stocks

A Price-volume breakout above Rs 475 level, logged on May 31, may result in a rally towards Rs 550 and Rs 580-mark in PNB Housing Finance

Any news flow, whether positive or negative, around a particular company not only affects price movement of the related stock but also that of its peer group firms. Shares of PNB Housing Finance, for instance, were locked in the upper circuit of 20 per cent at Rs 525.20, also its 52-week high on the BSE on Monday, after the company board approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to the Carlyle Group Inc. READ ABOUT IT HERE

Effectively, those of Punjab National Bank gained over 2 per cent on the BSE to Rs 43 apiece.

Similarly, as shares of HDFC Bank slipped to a low of Rs 1,488 per share on the BSE after the Reserve Bank of India (RBI) imposed a penalty of Rs 10 crore on the lender for deficiencies in regulatory compliances with regard to its auto loan portfolio, those of HDFC Ltd fell to Rs 2,439. 

Against this backdrop, if you hold any of the 'twin shares' in your portfolio, here's how to trade them:

Punjab National Bank (PNB)

Likely target: Rs 44 and Rs 47

Upside potential: 3% and 9%

With an "Inverse Head and Shoulder" pattern, the stock has clocked a positive breakout above Rs 39-mark and is on course to log a rally towards Rs 44 and Rs 47 levels. The volumes on the breakout suggest increased interest in the counter. The Moving Average Convergence Divergence (MACD) too has conquered the zero line, reflecting an upside momentum in the upcoming sessions, as per the daily chart. CLICK HERE FOR THE CHART
 
PNB Housing Finance Ltd (PNBHOUSING)

Likely target: Rs 550 and Rs 580

Upside potential: 4.50% and 8.50%

A Price-volume breakout above Rs 475 level, logged on May 31, may result in a rally towards Rs 550 and Rs 580 mark. Monday's move is supported by volume-based buying, showing increased interest of market participants. The immediate support comes at Rs 480 and Rs 475 levels, as per the daily chart. CLICK HERE FOR THE CHART
 
Housing Development Finance Corporation Ltd (HDFC)

Outlook: Needs to cross Rs 2,600 level, till then stay side-line

Until a decisive move above Rs 2,600 level does not occur, the upside bias for this counter is expected to witness a selling pressure. That’s said, the MACD has crossed the zero line upward, suggesting a positive direction in the coming days. The immediate support comes at Rs 2,450 mark, as per the daily chart. CLICK HERE FOR THE CHART
 
HDFC Bank Limited (HDFCBANK)

Outlook: Optimistic sentiment, but needs to cross Rs 1,550 levels

Even though the stock has crossed 100-days moving average (DMA) with MACD, showing a positive bias upon conquering the zero line, the bullish sentiment may not build further unless there is an active breakout above Rs 1,550-mark. The immediate support comes at Rs 1,450 levels. The overall optimistic trnd has a resistance at Rs 1,550 levels, as per the daily chart. CLICK HERE FOR THE CHART
 
Bajaj Finance Ltd (BAJFINANCE)

Likely target: Rs 6,000 and Rs 6,100

Upside potential: 3.50% and 5%


The stock needs to firmly close above the resistance of Rs 5,800 levels to surge towards Rs 6,000 and Rs 6,100 levels, as per the daily chart. The support, meanwhile, comes at 50-DMA, placed at Rs 5,250 levels.  CLICK HERE FOR THE CHART
 
Bajaj Finserv Ltd (BAJAJFINSV)

Likely target: Rs 12,000

Upside potential: 3%

As long as the counter is trading above the support of Rs 11,400-mark, the upside bias may take the stock towards Rs 12,000 levels. Volumes on the downside have been sluggish in the recent past, suggesting build up of positive momentum. The medium-term outlook stays highly optimistic with the stock price scaling higher highs, as per the daily chart. CLICK HERE FOR THE CHART