Shares of HDFC Bank have seen nominal gains in the year so far. In sync with the benchmark index, the stock is just 3% up this year; the equity barometer Sensex is also 3% up.
The private lender, on July 16 reported a 19% year-on-year (YoY) rise in its net profit for the April-June quarter at ₹9,196 crore after providing ₹2,984.1 crore for taxation.
Net interest income (NII) for the June quarter grew by 14.5% to ₹19,481.4 crore from ₹17,009.0 crore for the same quarter last year. It was driven by advances growth of 22.5%, deposits growth of 19.2% and total balance sheet growth of 20.3%.
We talked to analysts to understand the prospects of the stock for the short term and here's what they say:
Analyst: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi Share and Stock Brokers
The stock has been making higher highs and higher lows since June 17, 2022, which resulted in an 18% appreciation.
It has struggled to cross ₹1,540 in the last two trading sessions. Daily RSI (relative strength index) has declined from 65 levels, displaying bearish divergence (refer below chart) which may result in a sideways or minor correction in said counter in the coming days.
"If already holding the stock, then book some partial profits between ₹1,520-1,530. For fresh buying ₹1,455-1,465 will be appropriate levels for an upside target expected till ₹1,650 and with a stop loss of ₹1,400," said the analyst.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock has moved past the previous resistance zone of ₹1,515 to indicate a breakout improving the bias and is anticipated for a further upward movement in the coming days.
Also, on the daily chart, there is the formation of the “Golden Cross” of the significant 50EMA (exponential moving average) moving past the 200DMA (daily moving average) recently to overall strengthen the long-term trend.
The trend has got strong with the recent pullback witnessed and with the RSI also well placed is on the rise and has immense potential to carry on the momentum still further upward.
"We suggest buying and accumulating this stock for an upside target of ₹1,655 keeping the stop loss of ₹1,465," said the analyst.
According to a MintGenie poll, an average of 38 analysts have a ‘strong buy’ call on the stock.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.