HDFC Bank shares made headlines this week by scaling an impressive all-time high of Rs 1,810 on Tuesday, signaling strong bullish momentum. However, after hitting this peak, the stock has pulled back slightly and is currently hovering near the Rs 1,800 mark. This price point has historically been a significant area of rejection for the stock, as it has reversed from this zone multiple times in the past. As of now, the stock is trading below this critical level, indicating that resistance remains intact.
The Key Resistance Level: Rs 1,800
For HDFC Bank, the Rs 1,800 level has proven to be a tough barrier. The stock has faced rejection at this level on at least 3-4 separate occasions. Each time it touched or exceeded this mark, the stock reversed direction, highlighting its importance as a strong resistance zone. Despite reaching its all-time high earlier this week, HDFC Bank shares are currently struggling to maintain levels above Rs 1,800.
Technical Indicators: Bullish Momentum
On the bright side, the stock has shown positive signs on the technical front. The Relative Strength Index (RSI), a key indicator of momentum, has been holding steady above 50 for the past 5-6 trading sessions. This consistent strength suggests that the stock is building underlying bullish momentum, signaling potential for further gains if it can break through key resistance levels.
Jigar S Patel, a senior technical research analyst at Anand Rathi Shares and Stock Brokers, mentioned that the next crucial resistance level is at Rs 1,821.30 (R4). A decisive close above this level would indicate a breakout from the historical resistance zone, potentially triggering a strong upward movement.
“If the stock closes above Rs 1,821.30, it could lead to a significant rally, possibly pushing the shares towards the Rs 1,900-1,950 range,” Patel added.
Camarilla Pivot Points and Key Support
HDFC Bank’s price action is also being supported by the Camarilla Pivot levels, which offer insights into potential support and resistance zones. The stock has successfully traded above the R3 level (Rs 1,778), which is now acting as a support level. If this support holds, it could lay the foundation for a move higher towards the upper range of Rs 1,900-1,950.
Trading Outlook: What’s Next for HDFC Bank?
For traders and investors, the key to determining HDFC Bank’s next move lies in its ability to close above the Rs 1,821.30 level. A successful breakout would signal a continuation of the uptrend, with the stock potentially reaching new highs. On the flip side, failure to break above this resistance could result in another pullback, with support zones around Rs 1,735 to Rs 1,675 providing critical levels to watch.
Strong Bullish Trend: Moving Averages and RSI
HDFC Bank’s position above its 20-day, 50-day, 100-day, and 200-day Simple Moving Averages (SMAs) reinforces the bullish trend. These moving averages are trending upward alongside the stock’s price increase, providing further support for a continued rally. The RSI on daily, weekly, and monthly charts remains positive, signaling that the strength across multiple time frames is in favor of the bulls.
Rajesh Palviya, Senior VP at Axis Securities, also points out that the stock has broken through its six-month resistance zone at Rs 1,790, adding to the positive bias. Given the increasing trading volumes, more market participants are getting involved in the rally, which could fuel further upward momentum.
Investors Should Stay Long
Based on the current technical setup, Palviya suggests that traders and investors maintain long positions in HDFC Bank with an expected target range between Rs 1,885 and Rs 1,950. The stock’s position above critical moving averages and support levels further strengthens the case for a continued uptrend. However, investors should remain mindful of support levels in the Rs 1,735 to Rs 1,675 range.
HDFC Bank’s All-Time High: A Milestone for Private Banking
The all-time high achieved by HDFC Bank this week is a milestone for the stock, especially considering its position as one of the leading private sector banks in India. Its performance reflects the broader trend of strength in the private banking sector, with investors showing confidence in the bank’s financial stability and growth prospects.
HDFC Bank’s consistent performance, coupled with strong technical indicators, has made it one of the most attractive stocks for investors. The stock’s ability to maintain upward momentum despite periodic pullbacks is a sign of its resilience and potential for future growth.
Conclusion: The Next Big Move
As HDFC Bank continues to trade near the critical Rs 1,800 level, all eyes will be on how it performs in the coming sessions. The stock has shown significant bullish momentum, supported by key technical indicators and solid support levels. Investors and traders alike should closely monitor the Rs 1,821.30 resistance level, as a break above it could set the stage for a strong rally towards Rs 1,900 and beyond.
HDFC Bank Share Price Today: Current Trading Update
As of today, HDFC Bank shares are trading at Rs 1,797.60, up 0.7% from the previous trading session. Despite the slight pullback from its all-time high, the stock remains well-positioned for further upside potential, especially if it can sustain above critical support levels.