Chart check: Bias turns negative for HDFC Bank as stock dips below 200-DMA

The sharp fall in the last two-days has dented the charts of HDFC Bank, suggesting further downside amid some consolidation.

Equity markets have cracked heavily in the last two trading sessions, with benchmark indices sliding over 3 per cent, dragged by private banking majors - primarily HDFC Bank.

On Wednesday, the NSE Nifty 50 was down over 450 points or 2.1 per cent at close, while the Bank Nifty tumbled 4.3 per cent. HDFC Bank alone accounted to around 60 per cent of the day's loss on the Nifty 50, while collectively alongside ICICI Bank and Axis Bank the trio were responsible for near about two-third of the loss on the NSE benchmark.

Here's a quick chart check on the three banking stocks along side Bank Nifty. 
 

Bank Nifty

Current Level: 45,660

Support: 45,300; 44,600

Resistance: 46,300; 47,500

The Bank Nifty has plunged over 5.5 per cent in the last two trading sessions, and in the process has broken the support at 20- and 50-DMA. On Thursday, Bank Nifty was seen testing support around its 100-DMA at 45,300-odd levels. 

In case, the 100-DMA fails to hold, the banking index could dip further lower and test support around its 200-DMA at 44,600 levels.

However, given the sharp fall some, a relief rally at the banking counter can be expected. As such, on its way up, the Bank Nifty is likely to face resistance around its 50-DMA, at 46,300 levels, above which the index could spurt to 47,500 levels. CLICK HERE FOR THE CHART

HDFC Bank

Current Price: Rs 1,507

Bias: To remain negative below Rs 1,610

Resistance: Rs 1,530; Rs 1,575

Support: Rs 1,450

Shares of HDFC Bank have slumped up to 12 per cent in the last two trading sessions. While, the stock seems to be trading in oversold zone on the daily scale, momentum oscillators on the weekly scale have just turned negative thus suggesting a likelihood of further downside, or a prolonged phase of consolidation ahead.

Presently, the stock is trading below its key moving averages, including the all-important 200-DMA, which stands at Rs 1,610. The bias for the stock is likely to remain negative as long as the stock trades below the same.

Near resistance for the stock can be expected around Rs 1,530 and Rs 1,575 levels. On the downside, recent lows in 2023 at Rs 1,450-odd levels can act as demand zone for the stock. CLICK HERE FOR THE CHART

ICICI Bank

Current Price: Rs 988

Support: Rs 970; Rs 960

Resistance: Rs 994

ICICI Bank has been seen testing support around its 50-DMA for the last two trading sessions. Further, the stock has a strong support around Rs 965, wherein the 100-DMA coincides with the sharp gap-up seen in early December. 

The Rs 960 - Rs 970 area is expected to act as strong support zone for the stock in the near-term. Breach of the same could trigger a slide to Rs 945 levels.

On the upside, the stock needs to conquer its 20-DMA at Rs 994, in order to attract buyers. Bias on the weekly scale is still favourable; hence, the stock may not see much of a correction in the near-term. CLICK HERE FOR THE CHART

Axis Bank

Current Price: Rs 1,103

Upside Potential: 3.7%

Support: Rs 1,084

Resistance: Rs 1,108

Despite the recent fall, the bias for Axis Bank continues to remain marginally positive with the stock trading fairly above 3 out of the four key moving averages. The bias on the weekly scale too is positive, with some negative divergence now showing up on select momentum oscillators.

All-in-all, it looks like Axis Bank may see some upside from current levels, before any meaningful correction sets-in. For now, the 50-DMA at Rs 1,084 is the key support. Whereas, on the upside, the stock needs to break and trade above Rs 1,108 in order to gather fresh momentum. The stock can potentially rally to Rs 1,140. CLICK HERE FOR THE CHART