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Highlights
- Stock trading above buying price; support seen near Rs 900
- Momentum weak unless decisive close above Rs 960
- Short-term traders may book profit; long-term view remains positive
Investors tracking HDFC Bank are once again debating their next move as the stock trades above the Rs 900 mark. The discussion, at ET NOW Swadesh, gained attention after a viewer sought advice on his holding of 20 shares purchased at Rs 804.
With the stock currently trading around Rs 916, he is sitting on gains. The key question now is whether to hold on for more upside or exit and redeploy capital elsewhere.
Stock Performance: Gains, But Limited Momentum
Over the past six months, the stock has witnessed some pressure. However, on a one-year basis, it has delivered returns of roughly 8 to 9 percent. Despite its steady performance, experts believe the momentum seen in certain other banking stocks is currently missing in HDFC Bank.
According to market expert, while the bank’s fundamentals remain strong and valuations appear attractive, the technical setup is not very encouraging at this stage.
He pointed out that the stock is trading below its key moving averages and continues to remain in a negative trend zone. That said, it has repeatedly found support near the Rs 900 level, which is acting as a cushion for now.
Key Level to Watch: Rs 960
The expert highlighted Rs 960 as a crucial level. A decisive close above this mark could potentially trigger fresh momentum in the stock. Until then, significant upside movement may remain limited.
At present, the broader momentum within the banking space is tilted towards PSU banks, which have been outperforming private lenders in the short term.
Short-Term vs Long-Term View
For short-term traders, the recommendation is tactical. Since the stock is already in profit and lacks strong momentum, booking gains at current levels could be a practical move. The proceeds, according to the expert, may be rotated into PSU banking stocks that are currently showing stronger technical setups.
However, the long-term outlook for HDFC Bank remains positive. The bank’s structural growth story, balance sheet strength, and market positioning continue to support a bullish view over an extended horizon.
What Should Investors Do?Investors with a short-term horizon may consider exiting near current levels and shifting to higher-momentum banking stocks.
A fresh entry in HDFC Bank may be considered only after a strong close above Rs 960.
Long-term investors can continue to hold, given the bank’s solid fundamentals.
For now, the stock remains at a crossroads, technically subdued but fundamentally strong. Investors will need to align their strategy with their time horizon and risk appetite.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions)
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