HDFC Bank - on its next strong waveHDFC Bank is preparing itself for a major breakout of previous failed breakout of resistance. Near term target of 1774 (CMP 1681) in 15 days (5.5% gain) and 2089 (24% gain) by 20 Jun 2023. The recent results were decent. Institutions are accumulating at around 1600 levels to ride the next big wave which is underway with increasing momentum and high volumes. Single ticks volume data suggesting that banks are accumulating big long positions in stock. Its a tactics to spread rumours in market that the results are bad, if you deep dive into financials, its better than expected. Expenses of new branches loaded, which are negative contribution earners in first year, and yet the EPS estimates are almost flat. Impressive! without those preliminary expenses, the profits would have been higher. Further, merger of HDFC and Bank would create a very strong mammoth offering synergies of scale, economies of scale and cross selling resulting into a stronger and more valuable entity.
Positive outlook is confirmed by detailed Elliott Wave Analysis, Technical Indicators and Fundamentals.
It might look contrarion approach, but I am bullish on the counter!
