HDFC Bank Shares Surge 12% in a Month, Turn Positive for 2024. HDFC Bank Ltd. has made a stunning turnaround this year, with its shares turning positive and rising by up to 12% in just the last month. The stock’s rebound has had such an impact that it has contributed significantly to the Nifty index’s 120-point gain today, adding 64 points alone.

Strong recovery and performance metrics.

HDFC Bank shares have increased by roughly 25% since their 52-week low of ₹1,363.55 on February 14, 2024. This is the greatest month for India’s largest private sector lender since December last year, when it gained 9.6%.

Market Reactions and Analyst Insight

The recent positive trend has catapulted HDFC Bank’s shares into overbought territory, with the Relative Strength Index (RSI) at 72.3. Analysts advise against RSI readings above 70, which indicate potential overvaluation.

Bernstein confirmed its ‘Outperform’ rating on HDFC Bank, with a target price of ₹2,100 per share, representing a 26% increase from the previous closing. Bernstein emphasized the bank’s outstanding potential for profitability recovery, forecasting an increase in Return on Assets (RoA) from 1.8% to 2.1% over the following four years.

Technical Analysis and Future Outlook

Manas Jaiswal, a technical expert, expressed optimism about HDFC Bank’s future performance, especially when compared to other private banks. Jaiswal suggested keeping HDFC Bank with a stop loss at ₹1,500, anticipating a potential rally towards prior highs of ₹1,757.50 and maybe even surpassing levels to ₹1,850.

Conclusion

As HDFC Bank continues to grow, investors are keenly monitoring its strategic movements and financial health indicators. The bank’s durability and recovery during market changes highlight its position as a key player in the Indian financial industry. Stay tuned for additional information about HDFC Bank’s performance and market insights.

Source: CNBC

Read More: OSTP Media: Latest Tech, Automotive, and Trending News