Trade Idea of The Day - HDFC Bank Ltd Target Rs.35 - Religare Broking Ltd
HDFC Bank Ltd
BUY 25 AUG 750 CALL SELL 25 AUG 800 CALL Entry Range (Outflow) 14 – 16 Target 35 Stop Loss 7
Rationale
1. HDFC Bank is showing signs of a bullish reversal after finding strong support near the 730 zone, which has historically acted as a key demand area. The recent breakout from the immediate resistance of 750 zone, suggests an extended recovery ahead.
2. On the weekly timeframe prices are trading above the rising trendline support and formed a higher highs, higher lows formation, which suggests a bullish pattern for the broader time horizon.
3. From a technical perspective, the immediate upside hurdle is placed at the 800 zone, which has aligned with the 20-WEMA, The RSI has turned higher from oversold territory, indicating improving momentum. Additionally, the MACD histogram continues to recover, signalling that bearish momentum is gradually fading.
4. Considering the improving technical indicators and the formation of a strong base, the overall outlook looks bullish for the near term. Traders may adopt a buy-on-dips approach as long as the stock sustains above the 730-725 support zone.
Please refer disclaimer at https://www.religareonline.com/disclaimer
SEBI Registration number is INZ00017433
