Comment on the performance of HDFC Bank shares, which have experienced a decline of over 15% year-to-date contrasting with the Bank Nifty, which is down less than 3% over the same period by Mr Shrey Jain, Founder and CEO SAS Online - India's Deep Discount
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Below the Comment on the performance of HDFC Bank shares, which have experienced a decline of over 15% year-to-date contrasting with the Bank Nifty, which is down less than 3% over the same period by Mr Shrey Jain, Founder and CEO SAS Online - India's Deep Discount Broker
Third quarter results of HDFC Bank had spooked the investors’ sentiment, due to various factors such as less than expected growth, elevated cost of deposits and higher contingency provisions. Stock has the highest weight in Nifty Bank and Nifty50 indices and it pulled down the indices as well. However, investors have shifted their preference to public sector banks. Stocks such as Punjab National Bank, State Bank of India and Bank of Baroda have seen prices surging over the same period, cushioning the fall in Bank Nifty.
Going forward, analysts will keep an eye on the performance of HDFC Bank. One of the key factors would be how bank manages to raise low-cost funds through fixed deposits to ensure profitable growth going forward.
Stock of HDFC Bank should see a resistance at 1480-1500 band. Traders can accumulate stock on dips with closing stop loss of 1320. A close above 1500 can take it to 1640-1720.
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