HDFC Bank shares slip despite uptick in private banking sub-index. Analyst views

Shares of HDFC Bank Ltd slipped 0.88 per cent to settle at Rs 1,534.95 on Wednesday. The fall came in spite of a 0.48 per cent rise in sub-index Nifty Private Bank yesterday. On a year-to-date (YTD) basis, the private lender's stock has declined 9.61 per cent compared to a 1.38 per cent drop in the mentioned banking index during the same period. HDFC Bank is scheduled to announce its fourth-quarter (Q4 FY24) results on April 20.

On the technical front, support on the counter could be seen at Rs 1,520. And, resistance may be found at Rs 1,560. A decisive close above the said resistance level is required for a further upside move.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has seen a strong resurgence from Rs 1,400 level. The recent structure construes healthy developments. Although, some correction or profit booking should not be ruled out. Overall, the counter seems poised to continue its upward march in a gradual manner with in-between blips. On an immediate basis, strong support is placed around Rs 1,540-1,500. While on the higher end, the Rs 1,600-1,660 zone remains a daunting task for the time being."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "HDFC Bank has witnessed some resistance at Rs 1,557. The said level needs to be breached decisively for confirmation of a further rise in the coming days with next targets of Rs 1,590 and Rs 1,640 levels. Near-term support is maintained at Rs 1,475. Chances of some consolidation or perhaps a small correction can't be ruled out."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "One can consider buying the stock around Rs 1,540 level for a target of Rs 1,650. Keep stop loss placed at Rs 1,520."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,520 and resistance at Rs 1,560. A decisive close above the Rs 1,560 level may trigger a further upside till Rs 1,600. The expected trading range will be between Rs 1,500 and Rs 1,600 for a month."

HDFC Bank's gross loans rose sequentially in the March quarter to Rs 25.08 lakh crore, as per BSE data. Domestic retail loans rose about 3.7 per cent sequentially, while its corporate and wholesale loans, excluding non-individual loans of the company before the merger, fell 2.2 per cent sequentially. HDFC was merged with HDFC Bank on July 1, 2023.

Meanwhile, equity benchmarks were closed today to mark Id-Ul-Fitr (Ramzan Id). The domestic bourses would reopen on April 12, 2024.