The HDFC share strategy as it drops to 52-week low
India's leading private lender, HDFC Bank, experienced a sharp decline on Wednesday, with its shares falling as much as 2% to hit a 52-week low of Rs 700 on the BSE. The stock remained volatile as investors closely monitored the lender's ongoing search for a new CEO following Sashidhar Jagdishan's decision not to extend his current term, which ends on October 26.
This year, HDFC Bank shares have declined nearly 30%. Analysts note that the stock has formed a lower-top and lower-bottom structure on the daily timeframe and is currently near its nine-month low, indicating sustained selling pressure. Technical indicators, including the RSI, MACD, and moving averages, suggest a bearish trend, with the stock trading below its 20-day, 50-day, and 200-day EMAs.
A sustained move above Rs 750 could lead to a short-term bounce, but the broader structure is expected to remain weak as long as the stock trades below Rs 780. Conversely, a breach below the recent low could reignite selling pressure, potentially driving the stock down to Rs 680-660 in the coming days.
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