HDFC gains after brokerage hikes target price

HDFC rose 1.11% to Rs 2,329.40 after a foreign brokerage reportedly maintained its 'overweight' rating on the stock and raised its target price to Rs 2,900 from Rs 2,600 per share.

The brokerage is of the view that return on equity (RoE) and EPS growth is poised to stage a multi-year recovery, supported by structurally stronger positioning among non-bank lenders.

Shares of HDFC rose 5.90% in five trading sessions to its current market price of Rs 2,329.40 from its recent closing low of Rs 2199.60 on Monday, 25 November 2019.

Meanwhile, the S&P BSE Sensex was up 138 points or 0.34% to 40,959.05.

In the past one month, shares of HDFC climbed 10.65% to its current market price of Rs 2,329.40, outperforming the Nifty Financial Service index's 6.43% rise in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 64.028. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 50-day moving average (DMA) placed at Rs 2,253.63 and its 200 DMA placed at Rs 2,193.75.

HDFC's consolidated net profit surged 80.4% to Rs 10,388.61 crore on 27.4% rise in total income to Rs 34,051.89 crore in Q2 September 2019 over Q2 September 2018.

HDFC is engaged in financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes in India.

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