On the charts, the stock has slipped below all key moving averages and is well into “oversold” territories. The RSI reading on HDFC Bank is now at 24, whereas a reading below 30 means that the stock is in “oversold” territory.
In technical terminologies, the stock has also entered a “bear market” zone, meaning a drop of 20% or more from its peak. The stock had hit a 52-week high of ₹1,020 on October 23 last year, and the stock has cooled off 22% from those levels.
Brokerage firm Jefferies maintained its “buy” rating on HDFC Bank with a price target of ₹1,240, which implies an upside potential of 59% from current levels. This is also the second-highest price target on the street for HDFC Bank, among the 47 analysts that cover it.The brokerage said that at 1.7 times financial year 2027 estimated price-to-book, valuations of HDFC Bank appear attractive, according to Jefferies.
Motilal Oswal also maintained its “buy” rating on the stock with a price target of ₹1,100, implying an upside potential of 38% from current levels.
On Thursday, Macquarie had removed the stock from its “marquee buy” list.
45 out of the 47 analysts covering HDFC Bank have a “buy” rating on the stock.
Shares of HDFC Bank are trading 2.2% lower on Friday at ₹781. This is turning out to be the worst quarter for the stock since the January-March period of 2020, during which it had declined 32%. The stock has declined 21% so far in the first three months of the year.
