Shares of HDFC Bank Ltd were trading lower in Monday's trading session, snapping their two-day upmove. The stock fell 0.56 per cent to hit a day low of Rs 1,623.15. At this price, it has declined 9.42 per cent from its 52-week high value of Rs 1,791.90, a level seen on July 3, 2024.
The Mumbai-based lender reported a 35.33 per cent surge in its year-on-year (YoY) standalone net profit during the first quarter of the ongoing financial year 2024-25 (Q1 FY25). During the quarter under review, the country's largest private lender's profit came at Rs 16,174.75 crore compared with Rs 11,951.77 crore in the year-ago period.
However, net profit for the quarter ended on June 30 this year was down 2.04 per cent, sequentially, from Rs 16,511.85 crore in the previous quarter (Q4 FY24).
"HDFC Bank has been one of the laggards in the recent past. The merger fruits are yet to manifest the earnings of the lender," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
One can add the stock on every dip for a medium- to long-term perspective, Bathini also said. Housing Development Finance Corporation (HDFC) was merged with HDFC Bank in July last year.
On technical setup, support on the counter could be seen in the Rs 1,590-1,600 range. And, resistance may be found at Rs 1,635, followed by Rs 1,670 level.
"The stock has witnessed resistance near the 1670 zone with strong support at Rs 1,590-1,600 levels. A decisive breach above Rs 1,670 is required for further upside targets of Rs 1,740-1,800 levels. At the same time, a decisive breach below the Rs 1,580 zone can weaken the overall trend and trigger a downward move," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
"Support will be at Rs 1,590 and resistance at Rs 1,635. A decisive close above Rs 1,635 level may trigger a further upside towards Rs 1,660. The expected trading range will be between Rs 1,585 and Rs 1,660 for the short-term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
The counter traded higher than the 5-day, 10-, 20-, 30-, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 50-day SMA. The stock's 14-day relative strength index (RSI) came at 50.64. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 19.10 against a price-to-book (P/B) value of 2.84. Earnings per share (EPS) stood at 85.48 with a return on equity of 14.86.