HDFC Bank shares hover near one-year low level. Is it time to accumulate?

Shares of index-heavyweight HDFC Bank Ltd fell 1.17 per cent in Friday’s trade to hit a day low of Rs 1,387.25. At this price, the stock was just 0.35 per cent away from its one-year low of Rs 1,382.40, a level seen on January 24, 2024. And, it has slumped 21.08 per cent from a 52-week high level of Rs 1,757.80, hit on July 3 last year.

The stock saw heavy trading volume today as 12.56 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 9.27 lakh. Turnover on the counter stood at Rs 176.20 crore, commanding a market capitalisation (m-cap) of Rs 10,63,112.29 crore.

On the earnings front, the country’s largest private sector bank has recorded a 34 per cent jump in its third-quarter standalone net profit (Q3 FY24), at Rs 16,373 crore, compared to Rs 12,259 crore in the corresponding quarter last fiscal. Its total income rose to Rs 81,720 crore in the October-December quarter of FY24 against Rs 51,208 crore in the year-ago period.

Technical analysts largely suggested that support on the counter could be seen around Rs 1,380-1,350 levels. Resistance may be found at the Rs 1,450-1,480 zone. And, a decisive breach above the higher end of resistance area (Rs 1,480) can improve the overall structure, one of the analysts said.

“HDFC Bank has entered into the oversold territory. Immediate support will be at Rs 1,350 and resistance at Rs 1,450. The stock can only sustain the buying traction once it decisively moves above the Rs 1,450 zone,” Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, told Business Today TV.