The HDFC Bank extended decline today, after marking its biggest single-day drop since March 2020.In the last two days alone, HDFC Bank has corrected more than 12%.
This decline is fine but there's another picture to it which no one is talking about.
While there is so much panic among investors and traders but this panic can be a good investment opportunity.
There exists a curve resistance at long term charts around 1700-1720 levels which HDFC respected this time also and fell from that level.
On the other hand, If we talk about technical patterns, There is a clear Inverse Head & Shoulders pattern in making at long term charts. Such long term chart patterns don't fail most of the time.
HDFC current market price is 1500 and It is trading at a support zone of 1480-1500 & valuation is good at cmp.
Inverse Head & Shoulders pattern breakout level is 1690-1700.
Breakout of this pattern will take it to 2200 levels which is approximate 46-47% upside from current level. Incase It falls further, then It can be added more at 1450-1420-1400 levels.
This could be a great investment for long term investors.
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CMP 1477
I have invested 60% allocation in HDFC and created long position just now.
I am ready to invest more at 1450-1420 levels if comes.
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CMP 1448
Invested 20% more just now.
Can be added more if 1420-1400 arrives.
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Invested last 20% at 1388 today.
Fully 100% Invested now!
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CMP 1470
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CMP 1447
Still trading above my average buying price and trading in a small range.
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Still trading in a good demand zone & consolidating.
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CMP 1447
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Still trading within 1420-1450 range.
trading at my buying price.
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CMP 1460
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CMP 1528
Investment position 100 rupees in profit.
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CMP 1552
124 rupees in profit.
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CMP 1530
It gave breakout from 1420 - 1450 accumulation zone, touched 1555 resistance & then retraced and now heading back up. I think it will make a W pattern & will enter to advancing phase.
30 shares bought at 1430 as a fresh buy, how long shout I hold
akshit_official
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@Docharsh I will hold till 2200 and Acc to me, this target should come within 1-1.5 year.
ketans4253755
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OK so ... looks like trend may change as the weekly low has been broken ... But for sure ... there is a big price gap .. and price would fill the gap ... I am of the opinion that as a trader it's better to sell all qnty between 1590 to 1640. Investors can hold and add back some qnty if it breaks 1400.... But as a trader I would suggest that traders should exit max qnty between 1600 to 1650... GOOD ANALYSIS BRO... CHEERS
akshit_official
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@ketans4253755 As trading perspective, you’re right that one should book around 1650-1700 levels as these are resistance levels and after that can be added back at support zones of 1420-1450 but If we talk about it as investment then According to me, one shouldn’t book around 1650-1700 as fundamentally, profit has almost doubled from 35k cr to more than 60k cr in last three years and stock price has not gone anywhere (stock price in jan 21 was 1430) and it is trading at lowest valuation ever as of now. Stock was sideways because of merger issues but now I think this fundamentals should kick in and because of rate cuts and global stability, Acc to my analysis, 2200 levels should come within 2 years. P. S. : I’m fully invested as of now and will wait for 2200 which is my one and final exit level. 😬
ketans4253755
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@palwinder_sharda ... Good one bro ... I personally wish that you take it up to the moon 🌙 🌚.
@palwinder_sharda, great sir - always invest in tranches that will pay you more gains - rest its your wish as its your capital - thanks sir
akshit_official
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I’m fully invested in HDFC as of now. My average buying price is 1438. My investment approach and fundamental analysis approach is a bit different brother. I’m not recommending people to buy it. I’m just sharing my position. I’m fully invested and will wait for 2195 now. Let’s see what comes first. My levels or your levels :)