HDFC Bank shares up 12% in a month; what's next for this private lender's stock?

Shares of HDFC Bank on Tuesday settled 2.32 per cent higher at Rs 1,710.90. At this closing price, the stock has gained 11.97 per cent in a month. Despite the mentioned rise, the scrip was 2.67 per cent away from its one-year high value of Rs 1,757.80, a level seen on July 3 last year.

A majority of private lenders' counters today saw a decent uptick, in line with a stellar show in domestic benchmarks as well as in sub-index Nifty Bank.

On technical setup, support for HDFC Bank's stock could be seen at the Rs 1,650-1,645 zone. And, a decisive close above Rs 1,755 level is required for further upside.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has slowly and steadily gained strength in the last four weeks. The near-term support is maintained near Rs 1,645 level. Once a decisive breach above the Rs 1,755 zone is confirmed, traders can expect fresh upside targets of Rs 1,840-1,970 levels in the coming days."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said traders can buy HDFC Bank shares for an upside target of Rs 1,750. Keep stop loss placed at Rs 1,650, Singh mentioned.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,650 and resistance at Rs 1,700. A decisive close above Rs 1,700 level may trigger a further upside towards Rs 1,725. The expected trading range will be between Rs 1,600 and Rs 1,735 for the short term."

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 76.22. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 21.37 against a price-to-book (P/B) value of 2.97. Earnings per share (EPS) stood at 80.05 with a return on equity of 13.90.

The scrip saw heavy trading volumes as around 15.17 lakh shares changed hands. The figure was higher than the two-week average volume of 11.64 lakh shares. Turnover on the counter stood at Rs 258.14 crore, commanding a market capitalisation (m-cap) of Rs 13,01,673.64 crore.