Shares of HDFC Bank have outperformed Nifty and Bank Nifty in the short term. The large cap banking stock has risen 4.32% and 19.45% in six months and a year. On the other hand, Nifty is down 12.46% in six months and declined 1.04% in a year. Bank Nifty too lags the private lender with losses of 6.81 in six months and gain of 1.84% in a year.
The stock is down 4.15% against 6.85% fall in Nifty this year.
However, the large cap banking stock has corrected 9.25% from its record high of Rs 1,880 reached on December 9, 2024.
Here's a look at what analysts said on whether the stock is a value buy or a momentum trap amid the ongoing market correction.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 1680 and resistance will be at Rs 1740. A decisive move above the Rs 1740 level may trigger a further upside of Rs 1770. The expected trading range will be between Rs 1,680 and Rs 1,770 for the short-term."
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, Stoxbox said, "HDFC Bank is exhibiting a strong technical setup, making it an attractive buy candidate at current levels of Rs 1,700. The stock has successfully rebounded from the key support near Rs 1,624 and is trading above the short-term EMA, indicating a potential shift in momentum. The ADX is gaining strength, suggesting a developing trend, while the RSI has crossed 50, signaling improving bullish sentiment. The MACD has turned positive, with a rising histogram reinforcing the upward bias. A sustained move above Rs 1,749 could further strengthen the bullish outlook, paving the way for a mid-term target of Rs 1,845–1,880."
"However, the view remains contingent on the support zone holding firm. A decisive break below Rs 1,620 would negate the bullish stance, potentially leading to further downside. Given the improving technical indicators and breakout potential, traders may consider accumulating at current levels with a well-defined stop-loss below Rs 1,620 for optimal risk management," added Ranadive.
In the current session, HDFC Bank stock was trading 1.52% lower at Rs 1,704.85. Market cap of the bank slipped to Rs 13.04 lakh crore today. Total 1.45 lakh shares of the firm changed hands amounting to a turnover of Rs 24.87 crore on BSE. HDFC Bank stock has a one-year beta of 0.9. This signals the stock has average volatility.
The banking stock is trading neither in the oversold territory nor in the overbought zone as the relative strength index (RSI) of HDFC Bank stands at 57.2.
However, the large cap stock is trading lower than the 20 day, 100 day, 150 day but higher than the 5 day, 10 day, 30 day, 50 day and 200 day moving averages.
In the December 2024 quarter, the lender reported a 2.2% rise in standalone net profit at Rs 16,736 crore. Net interest income (NII), a key metric of the bank's earnings, climbed 8 percent YoY to Rs 30,690 crore during the quarter. Net Interest Margin (NIM) for the quarter came flat at 3.4 percent.