Buy HDFC bank at 390
Hi as per technical analysis buy HDFC bank at 390.
Target price is 450. post your view guys
this is view as per KotakStreet
Technical Commentary
The share price of HDFC Bank appears to have broken out of a Symmetrical Triangle
Formation (kindly refer to the chart above). A breakout (moving out of the upper side of
the pattern) from this pattern suggests that the Triangle formation occurred as a
continuation pattern and the share price is likely to establish the rising trend, which was
in force before the Triangle. The breakout has been accompanied with significant increase
in volumes, which further confirms the validity of the said breakout.
One must also observe the Weekly MACD (RSC) of the stock, which has turned positive
and has entered a rising mode suggesting that the stock price in all likelihood has triggered
a short-to-intermediate term up trend.
We believe that the weight of technicals listed above clearly suggest significant upsides
in the stock price from current levels. The measuring implications of the pattern suggest
that the share price is likely to test levels of Rs.450 and above in forthcoming weeks.
We therefore recommend accumulating the stock at current levels and on declines
(pullbacks) to support level Rs.380.
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