HDFC Bank remains as Sumeet Bagadia’s Navratri pick
HDFC Bank Ltd Bagaria has recommended a Buy on the HDFC Bank stock at ₹1547 and up to ₹1510 for a target price of ₹1700 to 1780. On the daily chart the stock has bounced from support of 1490 levels and currently trading at 1547 forming a three rising soldiers pattern, as per Bagadia More over the stock has also crossed the initial resistance of 1545 which is also close to its 20 day EMA levels .
On a weekly chart the stock has formed a strong green candle after successful closing of Doji Candle a week prior which is a sign of reversal. Also Read - Top Buy Calls: HDFC Securities sees up to 45% upside in these 5 stocks In addition, a momentum indicator RSI has bounced from the lower levels 30 and currently trading near 46 levels indicating strength.
So based on the above technical structure we are recommending a buy position in the stock for the medium to long term, said Bagadia HDFC Bank share price has corrected more than 10% from the peaks seen in early July. The heightened concerns around net interest margins, net worth and asset quality of HDFC Bank post its merger with the parent Housing Development Finance Corporation.
Has led to this correction. However, in general analysts maintain a positive view on Banking pack as a whole.
Also Read- Market close: Nifty 50, Sensex end lower; mid, smallcaps outperform Santanu Chakrabarti, Analyst – Banking and Finance at BNP Paribas India in his Q2 previes report said that given current fundamentals on earnings momentum, balance sheet health and a de-leveraged corporate India that promises a not-too-distant credit cycle, bank next twelve months price to book multiples, at or below longterm (10 year) averages, appear incongruous. Fears of the impact of hardening US rates forcing
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