Shares of private lender HDFC Bank rose sharply in Wednesday's trade to scale their 52-week high levels. The frontline stock surged 3.55 per cent to hit a high of Rs 1,791.90. Around 4.68 lakh were last seen changing hands today on BSE. The figure was lower than the two-week average volume of 11.16 lakh shares. Turnover on the counter came at Rs 83.40 crore, commanding a market capitalisation (m-cap) of Rs 13,60,446.39 crore. There were 8,29,129 buy orders against sell orders of 1,75,426 shares.
Analysts largely shared positive views on the counter. With that being said, support could be seen in the Rs 1,650-1,600 zone.
"One should definitely buy HDFC Bank shares at current levels. This is just the beginning of a marathon run. The stock has potential to gain up to 60 per cent in the next two years," Mitesh Panchal, a Sebi-registered analyst, told Business Today TV.
Immediate support emerges at Rs 1,650, followed by Rs 1,600 level, said Avdhut Bagkar, Derivatives & Technical Analyst, at StoxBox. The counter can hit Rs 2,000 in the near future, Bagkar added.
Separately, Nuvama Alternative & Quantitative Research said that HDFC Bank is set to give another boost. "The June 24 shareholding was just released, providing relief to patient domestic holders. The foreign holding in HDFC Bank has favoured the stock (25.9 per cent headroom vs requirement of 25 per cent), leading to a potential weight doubling in the MSCI August 24 review," it stated.
"Currently, HDFC Bank's weight in the MSCI EM Index is around 3.8 per cent. Post-rejig, this could jump to 7.2-7.5 per cent, potentially bringing in $3.2 billion to $4 billion in inflows over 6 days (base case), Nuvama Alternative also mentioned.
We expect the stock to gain momentum (cross Rs 1,900) until the official announcement on August 13, it further stated.