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HDFCBANK

Developing Technical & Fundamental outlook on HDFC, BUY or SELL?After the news of HDFC’s duo merger, the Market cheered and the price shot up. Now it’s back to the breakout point after the huge rise. Is it a good level to buy? Let's get into the Technical outlook first, then, we will explore the fundamental view of the merged entity. Technical Outlook: Bullish signals • Inverse Head & Shoulder pattern formation • Breakout of neckline & Retest Bearish Signals • Price could not sustain breakout of Major Resistance @ 2506 & trading below Psychological level @ 2500. • Indicators showing weakness. The chart has formed an Inverse Head & shoulder pattern. This pattern is considered a continuation pattern and a breakout above the neckline is a bullish signal. The Gap up and volume spike was due to the HDFC duo merger news. Price is back at the breakout level and retesting the neckline support. One key thing to notice on the chart is the Major S&R line at 2506. The price could not sustain above this level and currently trading below the psychological level of 2500. Overall Technical outlook – Neutral, Wait for buy/sell signal For Intraday/ Swing Trade purpose: Two important levels are - Horizontal Resistance at 2506 & the Neckline Support at 2435. If the price breaks down below 2435: Sell at the next red candle or at the retest of breakdown near 2435. SL - above the Major Resistance 2506. If the price breaks out above 2506: Buy at the next green candle or at the retest of breakout near 2506. SL - Below Neckline support 2435 Target/ Exit Level – Trailing SL We'll get correct levels only when the breakout happens under suitable conditions. There are multiple possibilities. The price may go up, down, or sideways. -------------------------------------- Fundamental Outlook: The HDFC duo has a track record of good business practices and customer service. The future looks promising for the merged entity. Reason? Home Loans are secured loans as the house is kept as collateral. Banks love this segment as they have the benefit of cash deposits which are available at lower rates, and they can offer cheaper home loans than NBFCs. But HDFC Bank could not aggressively participate. All they did was assign these home loans to HDFC for a small fee. Why do you ask? Because they would be directly competing with HDFC if they did. The merged entity will have the benefit of: 1) Cash deposits at significantly lower rates which will help offer cheaper loans 2) The customer base of HDFC bank 3) HDFC Bank will have the freedom to aggressively sell these loans. Key Risks: HDFC Bank has always played safe by keeping a lower concentration of loans in the higher-risk segments. It even survived the collapse of debt-ridden infrastructure companies in the 2000s. It seems that this strategy is changing. This press release says: www.hdfcbank.com A lot of mergers don’t work as expected. There could be many reasons for this to happen. Regulatory issues, Systematic problems, market conditions. Although the business outlook is strong, what matters more for intraday/ swing trade is the technical figures on the price chart. I will be following the price movement closely and take a trade when I get a signal. I will also post it here, so follow me and stay tuned for the next update. Post your comments. Let’s have a discussion. Happy trading. 😊 Co-Authors: in.tradingview.com in.tradingview.com Disclaimer: This is not buy/sell advice. Please do your due diligence before making any trading decision or consult your financial advisor. Sharing my analysis and thoughts for a stronger and healthier community. Cheers
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by Sai_Kumar
2
Simple Trade Setup | HDFCBANK | 13-04-2022 [INTRADAY]NSE:HDFCBANK Trade Setup for 13-04-2022 1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action. 2) Everything is mentioned on the chart. I hope it is easy to understand. 3) All the levels will work as support, resistance, entry and exit w.r.t price action near that level. 4) Avoid gap up or gap down chase. Wait and trade between levels. Please refer below chart for levels. Hope I made it easy to understand it. Do comment your doubt or suggestion. Note: Trade with Strict SL. It may or may not hit all the levels. So one can book profit / loss at respective level considering how price action works near that level.
NSE:HDFCBANK
by Trading_hawk
KPIGLOBAL bullish bagged 108% in just 78 days, next level markedNSE:KPIGLOBAL looking good @ 548 and chances to go up to 583+ with SL 530. #KPIGLOBAL BO further levels marked only for **practice. Happy LEarning !! #KPIGLOBAL BO history from our team. Captured exactly @ BO level and bagged complete result 👍 check the details shared in our signature column. suggested entry was 276 but due to gap up got entry @ 280 and reached till 583 = 303 Points which is 108% exactly in 78 sessions, Congratulations to all our equity friends, money doubled in 3months 💐💐💐👏👏👏👏👏👏 Ping me directly for any clarification on this stock. If you love the analysis just like and share to ur friends. Tnq 🙏
KLong
by Market_Order9
HDFC Bank Positional TradeOn an hourly time frame and daily timeframe, HDFCBANK has been facing resistance around 1520. If in Monday's trading session we see HDFC approach 1520 it can and looking at Banknifty's momentum which could halt at 37300 and reverse from there one can expect HDFC bank to halt at or around 1520 and reverse back like it has previously done several time so out targets for the short side are sell on rise Sell 1523 ( Targets will be 10-15 points up to previous closing ) Stop loss 1535 Whereas if banknifty maintains bullishness and breaks 37300 for the upside or other banks provide a bull run enter for a positional long as the targets will be huge in HDFC past 1520. FIIs have been buying in HDFC so it's a great time to enter it for investment purposes as well. Intraday buy side Buy at 1520-1525 ( Sustains for three 5min candle above 1520) stop loss 1500 TGT 1535-1550 and then trail you SL and see how much you can get Positional 1575 NSE:HDFCBANK easily. The markets have corrected sharply and once the Russia Ukraine war ends FIIs will be looking towards the Indian markets for fresh investments
NSE:HDFCBANKLong
by Nilanjan_Choudhury