HDFC Bank is one of the Favorite stocks of individuals, institutions and the foreign investors because of its strong performance in the past many years. Today, we will try to go deeper into this stock and learn about its strength and weaknesses. At present HDFC Bank is emerging from its merger with parent HDFC company and we are seeing consolidation phase in this stock. For the last one year this stock has given negative returns and we can expect this from HDFC bank share after the merger and after giving consistent returns for past many years. Currently this share is trading near Rs 1400 and showing a strong resistance near this point. This stock is also facing strong resistance in the segment of Rs 1650 to 1700 because it has tried to break these levels two times but failed every time.
Now there are good chances that in near future, it will again try to break above Rs 1700 and if it succeeded in it then it can make new higher targets. At present all the financial experts are positive on this stock and have given targets up to Rs 2100. So, in the coming months, HDFC bank stock has the great protentional to give up to 45% returns. Though, it may take six months to one and half year time to achieve these goals. The fundamental of the bank are strong and it has established business in market. HDFC bank is leader in many segments, and it is likely that it will consolidate its position in near future. Though, all this required a quite patience and people looking for fast results must keep themselves away from this stock.
The good point of HDFC bank stock is that it is still hold by many big mutual funds and big investors. Analyst put this stock in the category of moderate risk. If investors are looking for a stock to give good returns in the near future than they can buy some of HDFC bank shares.
Present Price- 1430
Action- Good to add in the investment portfolio
Future Potential- up to 45% returns in near future
Risk Level- moderate
Future potential – 1750 to 2100 (1 to 1.5 yr time frame)
Stop Loss – 1350
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