HDFC Bank: What Bank Nifty loser's recovery today means for shareholders 

HDFC Bank share price: Shares of India's largest private sector lender HDFC Bank surged after four trading sessions amid a strong rally in the equity market on Thursday. Despite today's recovery, HDFC Bank shares are trading below their long-term simple moving averages. HDFC Bank shares have been highly volatile in the last one year with a beta of 1.17. The stock's one month beta of 1.36 signals very high volatility on the banking counter. The stock slipped 14.46% in three months. 

In fact, the banking sector stock has been in a downtrend since one year. The short-term weakness spilled into the long term with the stock slipping 7.09% in three years. The recovery in the stock today brings into light the RSI of the stock, which lies at 37.4. The banking stock is the top loser among the 12 leading stocks on Bank Nifty in a year. 

The banking sector stock rose 4% to Rs 778.40 in the current session against the previous close of Rs 749.60. Market cap of the bank rose to Rs 11.84 lakh crore. Total 44.25 lakh shares of the firm changed hands amounting to a turnover of Rs 338.57 crore. 

HDFC Bank stock, which slipped to a 52-week low of Rs 726.75 on April 2 this year has recovered 7% till date.  And price targets for HDFC Bank suggest a decent upside.

Virat Jagad Sr. Technical Research Analyst at Bonanza said, "HDFC Bank remains in a broader downtrend as the stock continues trading below all major EMAs (20/50/100/200), indicating weak medium-term structure. However, recent price action suggests short-term base formation near Rs 740-750 with RSI recovering towards 47, showing improving momentum from oversold levels. Volumes remain mixed, signalling cautious buying interest. Fresh entry should be considered only above Rs 780 for targets of Rs 820 and Rs 850, with strict stop loss at Rs 745. Existing holders should maintain stop loss near Rs 740, as failure to hold this zone may trigger renewed selling pressure."

Aakash Shah, Technical Analyst at Choice Broking said, "HDFC Bank is showing early signs of recovery after witnessing a sharp corrective decline and is currently trading near Rs 769. The stock has bounced from the recent low zone around Rs 745, suggesting value buying is emerging at lower levels. Price action indicates an attempt to build a near-term base, though the broader trend still remains cautious. Technically, the stock is trading below its key moving averages, including the 20-day, 50-day, 100-day and 200-day EMA levels, which keeps medium-term pressure intact. A sustained move above Rs 780, which is near its 20-day EMA, may strengthen short-term momentum and improve sentiment. Immediate support is placed near Rs 745, while a break below this level may trigger further weakness. On the upside, the next key resistance is seen near Rs 809, which coincides with the 50-day EMA. A decisive breakout above these zones may lead to a stronger pullback rally in the coming sessions."