Is HDFC Bank ready for an uptrend?
HDFC Bank is one of the leading bank in India. With the market capital of over Rs 8,50,000 crores, it is the third largest company is India. It provides wide range of services such as retail loans, corporate loans, credit cards, demat accounts, etc. The company has been successfully managed to generate good net profits annually, with an average increase of over 20% in the last five years. Thus, the company has a strong footing in banking industry of India.
Analyzing derivatives data, we see that the PCR at 0.49 is in oversold region. Moreover, a lot of call unwinding has taken place today, with maximum unwinding taking place at 15600 and 1600 call option. Maximum open interest has been added at 1540 put option, which suggests bullishness in the derivatives segment.
The stock is up by over 1.5% is one of the top gainers among the Nifty stocks. Also, the stock is trading at its day’s high, and is looking strong for the rest of the day. It was sold off severely by the FIIs in the last three months, which saw the stock to fall over 13% during the period. However, it witnessed sharp recovery thereafter and it is already trading above its short-term and long-term moving averages. Interestingly, volumes have also been on a rise since the up move from the past few days, which suggests buying interest in the stock. Also, the technical indicators show improvement as the RSI at 55 indicates strong strength in the stock. The MACD line is above the signal line and trades above the zero line, which suggests good momentum of the stock.
Thus, it is expected that the stock will be performing well in short to medium term and has the potential to reclaim its all-time high level of Rs 1725 in times to come.
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