HDFCBANK - Extended Retracement Phase
📊 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.
