HDFCBANK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.6

📊 Chart Patterns: HDFCBANK is trading slightly below its 50 DMA (992 ₹) but above its 200 DMA (961 ₹), reflecting short-term weakness but long-term support. The price is close to its 52-week high (1,020 ₹), suggesting resistance overhead.

📈 Moving Averages:

- 50 DMA: 992 ₹ (near resistance)

- 200 DMA: 961 ₹ (support)

The stock is consolidating between these averages, showing indecision in the short term.

📉 RSI: 40.4 → Neutral to bearish, closer to oversold territory, indicating weak momentum but potential for bounce.

📉 MACD: -1.25 → Bearish crossover, confirming short-term weakness.

📊 Bollinger Bands: Price near lower band, suggesting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (1.64 Cr) is slightly below 1-week average (1.68 Cr), showing reduced participation and lack of strong buying interest.

🎯 Momentum Signals:

- Short-term bias: Neutral to bearish

- Entry Zone: 960–975 ₹ (near support levels)

- Exit Zone: 1,000–1,020 ₹ (near resistance)

- Breakout potential above 1,020 ₹ could target 1,050–1,070 ₹.

📌 Trend Status: Consolidating with bearish undertone. A decisive move above 992–1,020 ₹ is needed to confirm reversal into an uptrend.

Positive

• Strong EPS of 46.4 ₹ supports valuation strength.
• DII holdings increased (+0.30%), reflecting domestic institutional support.
• Quarterly PAT growth (18,641 Cr vs 18,155 Cr) shows earnings momentum (+10.8%).
• Dividend yield of 1.12% provides shareholder returns.

Limitation

• Stock trading near 52-week high (1,020 ₹) faces strong resistance.
• RSI and MACD indicate weak momentum.
• ROCE (7.35%) is modest compared to peers.
• Debt-to-equity ratio (6.39) is high, raising leverage concerns.

Company Negative News

• FII holdings decreased (-0.46%), showing reduced foreign investor confidence.

Company Positive News

• DII inflows (+0.30%) reflect domestic institutional support.
• Quarterly profit growth highlights operational strength.

Industry

• Industry PE: 14.7, lower than HDFCBANK’s PE of 21.4, suggesting overvaluation.
• Banking sector remains resilient, supported by credit growth and retail lending demand.

Conclusion

⚖️ HDFCBANK is consolidating with short-term weakness but supported by strong fundamentals. Entry near 960–975 ₹ offers accumulation opportunity, while resistance lies at 1,000–1,020 ₹. A breakout above 1,020 ₹ could extend momentum towards 1,050–1,070 ₹. Investors may accumulate cautiously for long-term growth, while traders should wait for confirmation above resistance.