HDFC AMC stock is trading at a PE of 48, comparing it to its competitor NAM, the PE is around 37. Industry Avg is around 18
Assuming HDFCAMC readjusts to PE levels of 37 the price levels should be around 2500.
Weekly charts also suggest that the stock may test the levels of 2500 i.e.the lower line of triangle pattern formation.
Let me know what you think.
SYMMETRICAL TRIANGLE PATTERN
Volumes – Falling volumes during the formation of a symmetrical triangle is a favorable sign and high volumes on breakout agree that the price will continue in the direction of the breakout.
The stock broke out of the pattern today, supported by high volumes.
Considering that the results are expected tomorrow, they can either play a spoilsport or add fuel to the fire and take the stock easily to its 52W high levels.
RSI: 68 ( Bullish but not overbought)
MACD is above its center and signal Line, this is a bullish indicator
HDFC Asset Management Co. Ltd. engages in the provision of asset management services. It also offers portfolio management and advisory services to clients. The company was founded on December 10, 1999 and is headquartered in Mumbai, India.