Chart Check on India’s BIGGEST Bank, Down 4%!

  • Stock Market Analysis
Aayush Khanna - Investing.com

The mood of the broader markets hasn’t been good since the start of the week. Today, the two index heavyweights that have dented investors’ sentiments are -Reliance Industries Ltd (NS: RELI ) (down 1.6%) & HDFC Bank (NS: HDBK ) (down 4.01%). Yes, that’s a pretty serious cut in India’s largest bank which has a market capitalization of INR 12,34,104 crore, which also makes it the 3rd largest NSE-listed company.

The stock has been hammered by investors after the bank said it might face some pressure on profit margins in the near term owing to the merger with HDFC Limited. This kind of weak commentary was not expected from such a strong bank and as a result, we are witnessing investors fleeing away from this counter.

Image Description: Daily chart of HDFC Bank with volume bars at the bottom

Image Source: Investing.com

As of 12:32 PM IST, the stock is trading 4.01% down at INR 1,563 and is just an inch away from breaking its crucial support level of INR 1,558. The almost vertical fall in the last two sessions has chipped away a total of 6% from the share price. This relentless fall might extend beneath the support which will be an extremely bad sign for the counter.

In case the stock slips below INR 1,558 which is around the lowest level since April 2023, the next level that investors can see is around INR 1,532, the lowest level of 2023. This is the highest-weighted stock in Nifty 50 (13.68%) and Nifty Bank (40.42%). Hence, traders trading in these two indices should also become cautious if the stock penetrates below its support.

In case you want to connect with me, reach out on Twitter. My handle is - aayushxkhanna

Read More: F&O: Stock Makes a Dark Cloud Cover, Falls 5%!

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search
  • Neera CHOURASIA @Neera CHOURASIA
    Right time to pick both stocks.
    Like 0
  • AV CARE FOR YOUR MONEY @AV CARE FOR YOUR MONEY
    only moving  up psu bank..... pvt bank -ve zone
    Like 0
  • Twenty years Exp @Twenty years Exp
    Its all operators drama. Now all india banks move up n cross high
    Like 0

Related Articles