PL Technical Research: STOCK ON RADAR - A GIANT AWAKENING - HDFC BANK

PL Technical Research: Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher Pvt. Ltd.

STOCK RADAR:- A GIANT AWAKENING - HDFC BANK cmp: 1650, After a long time and almost more than 2 years of consolidation, HDFC Bank formed a CUP and handle pattern on the weekly chart and has given a breakout above 1580 zone(weekly close).

Further ahead, the next major resistance zone is at around 1730 levels, which has been acting as a strong hurdle for the last 2 years. The stock has moved past the 50 EMA is at around 1605 and strong support maintained near the important 200 period MA is at 1430. A decisive weekly close above 1730 zone shall awaken a giant towards the next higher target of 2100 level.

With the RSI recovering strongly from the oversold zone, indicating a decent rise to signal a buy has much upside potential visible from current levels. With the chart looking good, we suggest buying and accumulating the stock for an upside target of 2100–2300 levels for the medium to short term time frame.