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."