HDFC Bank shares down 11% from one-year high level; should you enter? (2024)

Shares of HDFC Bank Ltd slipped 1.21 per cent in Monday's trade to hit a low of Rs 1.598.20 over their previous closing of Rs 1,617.80. Considering today's low price, it has fallen 10.81 per cent from its 52-week high of Rs 1,791.90, a level seen earlier this month on July 3.

The private lender reported a 35.33 per cent uptick in its year-on-year (YoY) standalone net profit during the first quarter of the ongoing financial year 2024-25 (Q1 FY25). During the quarter under review, the country's largest private lender's profit came at Rs 16,174.75 crore compared with Rs 11,951.77 crore in the year-ago period.

However, net profit for the quarter ended on June 30 this year was down 2.04 per cent, sequentially, from Rs 16,511.85 crore in the previous quarter (Q4 FY24).

"There were a lot of hopes of a revival in HDFC Bank, given its strong brand name and franchise. However, it is still struggling with the merger issue which is why the stock is underperforming. And, I don't see this issue sort out very fast and it will take around four to six months," Gaurav Dua, SVP, Head of Capital Market Strategy at Sharekhan by BNP Paribas, told Business Today TV.

So, investors will have time to buy the stock, the market expert added.

HDFC Bank shares have seen a lot of fluctuations following its merger with parent Housing Development Finance Corp (HDFC) in July last year.

On technical setup, support on the counter could be seen in the Rs 1,580-1,600 zone.

"HDFC Bank has witnessed some strong whipsaw moves recently, showcasing a breakout and re-testing the same within a short period. For now, support is seen at the Rs 1,580-1,600 zone, breaching which it can test Rs 1,520 levels. On the higher end, the Rs 1,690-1,700 is a crucial zone to watch out for as any decisive breakthrough is anticipated to provide the much-needed impetus for the next leg of the rally in the counter into the uncharted territory," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"The stock looked weak on daily charts. It can slip towards Rs 1,580 level in the near term," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. With that being said, immediate resistance will be placed at Rs 1,635, Singh mentioned.