RESEARCH REPORT ON HDFC BANK
HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It is India’s largest private sector bank by assets and world’s 10th largest bank by market capitalization as of April 2021. It is the third largest company by market capitalization of $122.50 billion on the Indian stock exchanges. It is also the fifteenth largest employer in India with nearly 150,000 employees.
Name HDFC BANK
Traded as • NSE: HDFCBANK
• BSE: 500180
• NYSE: HDB (ADS)
• BSE SENSEX Constituent
NSE NIFTY 50 Constituent
Industry Financial services
Founded August 1994 (28 years ago)
Headquarters Mumbai, Maharashtra
Key people • Atanu Chakraborty
Products • Credit cards
• Consumer banking
• Commercial banking
• Finance and insurance
• Investment banking
• Mortgage loans
• Private banking
• Private equity
Revenue ₹359,695 crore (US$45 billion) (2022)
₹53,150 crore (US$6.7 billion) (2022)
₹1,422,934 crore (US$180 billion) (2022)
₹246,771 crore (US$31 billion) (2021)
Number of employees 1,52,511 (2022)
HDB Financial Services
HDFC Bank Ltd, part of the private banking space, has not done much so far in 2022 but recent price action suggests that bulls are trying to take control. The stock is still down by over 17 per cent from its October 2021 high of Rs 1724.
The private sector bank with a market capitalization of more than Rs 8 lakh cr rose more than 12 per cent from its 52-week low of Rs 1271 recorded on 17 June 2022. It rallied more than 8 per cent in a month.
BUY HDFC BANK BETWEEN 1430-1450, TARGET 1600, SL 1330
The recent price action helped the stock to breakout from a rectangle pattern on the daily charts for the first time since April 2021 which is a bullish sign.
A rectangle is a continuation pattern. When a parallel pattern is formed horizontally, it is called a rectangle. A breakout is recorded when the prices go outside of the rectangle. A breakout occurs in the direction of the existing trend.
On the price front, the stock is trading well above the short- and long-term moving averages placed around 5,10,34,55,100 and 200-DMA.
With over 20 per cent decline from the top, the stock has reached to role reversal level. It has formed base at support level which tilt towards equilibrium between buyers and sellers.
Stock has formed multiple bullish candles like twizzer bottom, Hammer and bullish engulfing pattern. It denotes the presence of buyers at key support level.
On weekly Chart, Stock has breached falling channel. It denotes positive movement. The stock has formed a rectangle pattern on daily chart, it implies a strong base. It has given a breakout followed by a retest.
Based on the rationale, the stock is looking positive. It can be accumulated in the range of 1450 to 1430 with a stop loss of 1330 on a closing basis. On the higher side, the stock has potential up to 1600 level in the next 1-2 months.