HDFC Bank Shares Fall 2% After Q3 Business Update; Union Bank Jumps 4% To Fresh 52-Week High

The day’s trading activity can thus be seen as a duel between two lenders. While HDFC Bank, the private sector behemoth, saw pressure in its selling despite its deposits registering strong double-digit growth, the shares of Union Bank of India, the public sector major, surged by more than 4% to a new 52-week high in the wake of strong advances in the retail as well as the MSME businesses.
Investors tracking banking stocks using 5Paisa reported a strong fall for HDFC Bank with a drop of 1.6% to₹984, thereby dragging Nifty down, whereas Union Bank defied market trends and scaled a high of ₹161.25. 

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HDFC Bank: The LDR Balancing Act 

At the end of the Q3 FY26 update, HDFC Bank continued to be steady with high expectations. The period-ending gross advances rose 11.9% YoY to ₹28.45 lakh crore, while deposit growth for the bank remained robust-average deposits increased 12.2% YoY to ₹27.52 lakh crore.
Yet the market didn't react with gusto. The stock slid about 2% intraday as investors focused on slower sequential growth.

Union Bank: PSU Momentum Continues

The momentum that is often looked for in investments was clearly visible in Union Bank of India. The stock recorded a 52-week high of Rs 161.25 on provisional data that reflected a strong double-digit growth in its RAM (Retail, Agriculture, and MSME) book, growing 11.49% year on year. 
The bank has also made improved use of its CASA, which stands at 33.95%, up 53 bps from the same period last year, indicating a reduced cost of funds.

Technical Deep-Focus: Divergent

Technically speaking, these two stocks are at each other’s extremes.

• HDFC Bank: Currently, it is in the No-Trade Zone for momentum investors. It has moved below the short-term Moving Averages (20-day EMA). The first support is at ₹980 levels. If that is breached, then the fall can proceed to ₹960. However, the RSI is nearing the oversold levels, suggesting a pullback.
• Union Bank of India: The chart appears clearly bullish. A breakout above the psychological level of ₹160 came with heavy volumes, marking a genuine breakout. The stock was trading significantly above the major moving averages (50-DMA and 200-DMA).
• Global Perspective: International desks are agnostic on private banks that are going through a consolidation process, but are overweight on chosen PSUs on valuation comfort. The divergence in price actions on Monday fits into a global rotation from "expensive growth" (Private) to "value with momentum" (PSU).

What This Means to You

The banking sector offers two clear investment themes at present: a valuation buy in consolidating private majors and a momentum play in growing PSUs.
In HDFC Bank, the major trigger would be the final earnings call on January 17, 2026, where commentary on margins would be important. In Union Bank, sustaining above ₹160 could provide another 10-15% move.