The stock hit a new high of ₹1,803 on Monday, surpassing the previous high of ₹1,794, which it had hit on July 3, which was the day the lender had disclosed its shareholding pattern for the June quarter, which made it eligible for a weightage increase in the MSCI Global Standards Index.
However, the stock had seen a fall from those levels as earnings concerns emerged and the index service provider MSCI decided to increase its weightage in two tranches, contrary to expectations of a full increase in one go.
According to Nuvama Alternative, HDFC Bank was supposed to see inflows worth $1.8 billion during this second tranche of investments. However, the stock closed below both its recent high and the previous high.
On the charts, HDFC Bank’s Relative Strength Index (RSI) closed above the mark of 60, but remains below the “overbought” levels of 70.
“HDFC Bank is making its fourth attempt to break past the critical 1800 resistance level, following failed attempts on July 3, 2024, September 27, 2024, and November 12, 2024. This time, technical indicators point toward a potential breakthrough:
– Monthly ADX has crossed above the key 25 mark, signaling confidence in the developing trend.
– Strong base at 1700, providing a solid foundation for further upside.
– On the daily chart, the ADX indicator has turned positive, suggesting momentum could extend swiftly towards 1840-1900 in the near term.
Additionally, options data hints at narrowing ranges, with a firm elevation of base at ₹1,750 for the November series’ final week. A sustained move above ₹1,840 is likely to unlock a fresh upward trajectory towards the ₹1,900 – ₹1,950 zone,” Sacchitanand Uttekar of Tradebulls said.
Shares of HDFC Bank eventually ended 1.9% higher on Monday at ₹1,778.95. The stock is back to being positive on a year-to-date basis, with gains of close to 5%. The stock contributed 70 points to the Nifty upside on Monday.
