#banknifty 47515 watch out if it takes support, then can see upside
#gold 66089 going strength to strength from last few trading sessions
Opposite to yesterday’s market scenario, the broader markets are trading in the green zone. The banking index Nifty Bank is up 0.69% to 47,646, by 10:31 AM IST. The biggest contribution in this rally is coming from HDFC Bank (NS:HDBK) which holds the highest weightage of 36.5% and is currently contributing 0.85% to the index.
HDFC Bank is the largest private-sector lender in the country and after a merger with HDFC Limited, its market capitalization has now risen to INR 10,84,615 crore. It has been a laggard for the last 3 years, while a return of 31% in the last 5 years is also not impressive. Despite this, FIIs continue to hold more than half of the bank, with a 52.3% interest.
HDFC Bank is the largest private-sector lender in the country and after a merger with HDFC Limited, its market capitalization has now risen to INR 10,84,615 crore. It has been a laggard for the last 3 years, while a return of 31% in the last 5 years is also not impressive. Despite this, FIIs continue to hold more than half of the bank, with a 52.3% interest.
However, as the stock is noticeably down from its 52-week high, INR 1,757.5, there is a decent upside potential in case mean reversion happens. InvestingPro fair value is INR 1,760.5 which is almost the 52-week high, depicting a healthy 21% upside potential.
However, as this is a slow-moving counter, a shorter target for a swing might be better suited here, especially when the market is becoming volatile prior to the elections.
However, as this is a slow-moving counter, a shorter target for a swing might be better suited here, especially when the market is becoming volatile prior to the elections.
On the technical front, the stock surged past its falling trendline resistance on the daily chart which is a trend reversal signal. There is a very small gap left on the charts, and to cover it, the stock needs to travel to INR 1,528 which can be deemed as the first level where long positions can be partly liquidated.
This is quite a beaten-down counter and definitely undervalued, therefore I don’t see much downside from here. But one thing that needs to be noted is very high returns should not be expected solely from looking at the size of the company and the laggard performance of the stock.
This is quite a beaten-down counter and definitely undervalued, therefore I don’t see much downside from here. But one thing that needs to be noted is very high returns should not be expected solely from looking at the size of the company and the laggard performance of the stock.
#indusindbank 1543, multiple rejections not ready to correct, ready for an upside if it holds the support, entry on breakout/retest
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