HDFCBANK - Extended Retracement Phase

https://in.tradingview.com/chart/HDFCBANK/Jupfo5vi-HDFCBANK-1H-Technical-Analysis/

📊 HDFC Bank – Daily Chart Update | Extended Retracement Phase

Timeframe: 1D
Trend Context: Medium-term correction within a broader structure
Current Price: ~₹925

🔍 What Changed from Previous Analysis? (Important Update)

Earlier, we discussed an ABC correction nearing completion around the ₹960–965 zone.
📉 Price failed to hold that zone, leading to a deeper, extended retracement.

Now the structure has evolved into an extended Fibonacci retracement, where buyers may re-emerge, but with higher risk.

📐 Fibonacci-Based Structure (Educational)

From the prior swing low → swing high:

113% Retracement: ~₹928

127% Retracement: ~₹916
➡️ This ₹916–928 zone is now marked as a “Best Buying Try” area, not blind buying.

📘 Extended retracements often invite short-covering + value buying, but confirmation is mandatory.

📌 Key Levels to Watch (Updated)
🟢 Support / Demand Zones

Primary Demand: ₹916–928

Major Breakdown Level: ₹857

🔴 Resistance / Recovery Zones

First Swing Target: ₹971 (50% retracement)

Second Swing Target: ₹999 (78.6% retracement)

Major Supply: ₹1,018–1,020

🟢 Bullish Scenario (Conditional Recovery)

If price:

Holds ₹916–928

Forms a base / reversal structure (daily close improvement, higher low)

Then:

First bounce toward ₹960–971

Sustained strength can extend toward ₹995–1,000

📈 This would be a relief rally, not trend reversal yet.

🔴 Bearish Scenario (Risk Case)

If price:

Breaks below ₹916 with daily close

Then:

Extended correction likely

Downside opens toward ₹880 → ₹857

📉 Below ₹916, buyers lose positional control.

🎓 Educational Insights

Extended retracements = high reward but high patience trades

Buying zones ≠ buying signals

Daily timeframe requires confirmation, not anticipation

Strong trends correct deeper before resuming

🧠 Options Trading View (Educational Only)
🟢 Near ₹916–928 (Only After Confirmation)

Bull Call Spread (ATM + OTM)

Put Credit Spread for range-bound recovery

🔴 If ₹916 Breaks

Bear Put Spread

Call Credit Spread near ₹960–980

⚠️ Avoid naked option selling in falling markets.

✅ DOs

✔ Wait for daily confirmation
✔ Trade zones, not emotions
✔ Use defined risk strategies
✔ Reduce position size during deep corrections

❌ DON’Ts

❌ Don’t average blindly
❌ Don’t assume every dip is the bottom
❌ Don’t ignore Fibonacci extensions
❌ Don’t overtrade volatility

🧾 Conclusion

HDFC Bank is now in an extended corrective phase.
The ₹916–928 zone is a potential demand area, but only confirmation will decide whether this becomes a base or a breakdown.

📌 Patience here is more profitable than prediction.

⚠️ Disclaimer

This analysis is for educational purposes only. I am not a SEBI registered analyst. Markets are risky, and I may be wrong. Please consult your financial advisor before trading.