HDFC Bank stock outperforms Nifty, Bank Nifty in short term; is it a value buy or momentum trap?
HDFC Bank share price today: HDFC Bank shares have corrected 9.25% from their record high of Rs 1,880 reached on December 9, 2024.
- Mar 3, 2025,
- Updated Mar 4, 2025 2:38 PM IST
Shares of HDFC Bank have outperformed Nifty and Bank Nifty in the short term. The large cap banking stock has risen 4.32% and 19.45% in six months and a year. On the other hand, Nifty is down 12.46% in six months and declined 1.04% in a year. Bank Nifty too lags the private lender with losses of 6.81 in six months and gain of 1.84% in a year.
The stock is down 4.15% against 6.85% fall in Nifty this year.
However, the large cap banking stock has corrected 9.25% from its record high of Rs 1,880 reached on December 9, 2024.
Here's a look at what analysts said on whether the stock is a value buy or a momentum trap amid the ongoing market correction.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 1680 and resistance will be at Rs 1740. A decisive move above the Rs 1740 level may trigger a further upside of Rs 1770. The expected trading range will be between Rs 1,680 and Rs 1,770 for the short-term."
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, Stoxbox said, "HDFC Bank is exhibiting a strong technical setup, making it an attractive buy candidate at current levels of Rs 1,700. The stock has successfully rebounded from the key support near Rs 1,624 and is trading above the short-term EMA, indicating a potential shift in momentum. The ADX is gaining strength, suggesting a developing trend, while the RSI has crossed 50, signaling improving bullish sentiment. The MACD has turned positive, with a rising histogram reinforcing the upward bias. A sustained move above Rs 1,749 could further strengthen the bullish outlook, paving the way for a mid-term target of Rs 1,845–1,880."
"However, the view remains contingent on the support zone holding firm. A decisive break below Rs 1,620 would negate the bullish stance, potentially leading to further downside. Given the improving technical indicators and breakout potential, traders may consider accumulating at current levels with a well-defined stop-loss below Rs 1,620 for optimal risk management," added Ranadive.
Hardik Matalia, Derivative Analyst, Choice Broking said, HDFC Bank is currently trading at Rs 1,696, witnessing a decline from the higher level. The stock recently attempted to move above its key moving averages, including its short—term (20-day) and medium-term (50-day) EMA’s, but is facing resistance around the Rs 1,735-Rs 1,750 zone. Despite this, it remains above the long-term (200-day) EMA at Rs 1,681, which acts as a crucial support level. A sustained move above the Rs 1,750 resistance zone could confirm further upside momentum, while failure to hold current levels might invite further selling pressure. The stock has been trading in a consolidation phase over the past few weeks, with RSI at 48.40, indicating neutral momentum. The RSI is hovering near the 50 mark, suggesting indecision, and any movement above 50-55 could signal renewed buying interest. Volume analysis shows decent participation, but a breakout with higher volume is required to confirm a bullish trend continuation."
"For short-term traders, Rs 1,680-Rs 1,690 remains an important support zone, and any dip towards these levels could present a buying opportunity with a stop-loss below Rs 1,660. On the upside, a breakout above Rs 1,750 could trigger a move towards Rs 1,800-Rs 1,820 levels. Long-term investors may consider gradually accumulating at current levels, as the stock is showing signs of stability above its long-term (200-day) EMA. However, a sustain break below Rs 1,680 could lead to further downside pressure, making it crucial to monitor price action closely in the coming sessions," said Matalia.
In the current session, HDFC Bank stock was trading 1.52% lower at Rs 1,704.85. Market cap of the bank slipped to Rs 13.04 lakh crore today. Total 1.45 lakh shares of the firm changed hands amounting to a turnover of Rs 24.87 crore on BSE. HDFC Bank stock has a one-year beta of 0.9. This signals the stock has average volatility.
The banking stock is trading neither in the oversold territory nor in the overbought zone as the relative strength index (RSI) of HDFC Bank stands at 57.2.
However, the large cap stock is trading lower than the 20 day, 100 day, 150 day but higher than the 5 day, 10 day, 30 day, 50 day and 200 day moving averages.
In the December 2024 quarter, the lender reported a 2.2% rise in standalone net profit at Rs 16,736 crore. Net interest income (NII), a key metric of the bank's earnings, climbed 8 percent YoY to Rs 30,690 crore during the quarter. Net Interest Margin (NIM) for the quarter came flat at 3.4 percent.
Shares of HDFC Bank have outperformed Nifty and Bank Nifty in the short term. The large cap banking stock has risen 4.32% and 19.45% in six months and a year. On the other hand, Nifty is down 12.46% in six months and declined 1.04% in a year. Bank Nifty too lags the private lender with losses of 6.81 in six months and gain of 1.84% in a year.
The stock is down 4.15% against 6.85% fall in Nifty this year.
However, the large cap banking stock has corrected 9.25% from its record high of Rs 1,880 reached on December 9, 2024.
Here's a look at what analysts said on whether the stock is a value buy or a momentum trap amid the ongoing market correction.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 1680 and resistance will be at Rs 1740. A decisive move above the Rs 1740 level may trigger a further upside of Rs 1770. The expected trading range will be between Rs 1,680 and Rs 1,770 for the short-term."
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, Stoxbox said, "HDFC Bank is exhibiting a strong technical setup, making it an attractive buy candidate at current levels of Rs 1,700. The stock has successfully rebounded from the key support near Rs 1,624 and is trading above the short-term EMA, indicating a potential shift in momentum. The ADX is gaining strength, suggesting a developing trend, while the RSI has crossed 50, signaling improving bullish sentiment. The MACD has turned positive, with a rising histogram reinforcing the upward bias. A sustained move above Rs 1,749 could further strengthen the bullish outlook, paving the way for a mid-term target of Rs 1,845–1,880."
"However, the view remains contingent on the support zone holding firm. A decisive break below Rs 1,620 would negate the bullish stance, potentially leading to further downside. Given the improving technical indicators and breakout potential, traders may consider accumulating at current levels with a well-defined stop-loss below Rs 1,620 for optimal risk management," added Ranadive.
Hardik Matalia, Derivative Analyst, Choice Broking said, HDFC Bank is currently trading at Rs 1,696, witnessing a decline from the higher level. The stock recently attempted to move above its key moving averages, including its short—term (20-day) and medium-term (50-day) EMA’s, but is facing resistance around the Rs 1,735-Rs 1,750 zone. Despite this, it remains above the long-term (200-day) EMA at Rs 1,681, which acts as a crucial support level. A sustained move above the Rs 1,750 resistance zone could confirm further upside momentum, while failure to hold current levels might invite further selling pressure. The stock has been trading in a consolidation phase over the past few weeks, with RSI at 48.40, indicating neutral momentum. The RSI is hovering near the 50 mark, suggesting indecision, and any movement above 50-55 could signal renewed buying interest. Volume analysis shows decent participation, but a breakout with higher volume is required to confirm a bullish trend continuation."
"For short-term traders, Rs 1,680-Rs 1,690 remains an important support zone, and any dip towards these levels could present a buying opportunity with a stop-loss below Rs 1,660. On the upside, a breakout above Rs 1,750 could trigger a move towards Rs 1,800-Rs 1,820 levels. Long-term investors may consider gradually accumulating at current levels, as the stock is showing signs of stability above its long-term (200-day) EMA. However, a sustain break below Rs 1,680 could lead to further downside pressure, making it crucial to monitor price action closely in the coming sessions," said Matalia.
In the current session, HDFC Bank stock was trading 1.52% lower at Rs 1,704.85. Market cap of the bank slipped to Rs 13.04 lakh crore today. Total 1.45 lakh shares of the firm changed hands amounting to a turnover of Rs 24.87 crore on BSE. HDFC Bank stock has a one-year beta of 0.9. This signals the stock has average volatility.
The banking stock is trading neither in the oversold territory nor in the overbought zone as the relative strength index (RSI) of HDFC Bank stands at 57.2.
However, the large cap stock is trading lower than the 20 day, 100 day, 150 day but higher than the 5 day, 10 day, 30 day, 50 day and 200 day moving averages.
In the December 2024 quarter, the lender reported a 2.2% rise in standalone net profit at Rs 16,736 crore. Net interest income (NII), a key metric of the bank's earnings, climbed 8 percent YoY to Rs 30,690 crore during the quarter. Net Interest Margin (NIM) for the quarter came flat at 3.4 percent.