HDFC Bank Share Price: HDFC Bank Ltd shares surged 2.33% on Friday, reaching a new 52-week high of ₹1,996.30, following the Reserve Bank of India’s (RBI) bold move to slash the repo rate by 50 basis points, bringing it down to 5.5%. This move comes as part of a broader monetary policy easing trend, with the central bank reducing the repo rate by a total of 100 basis points since February.
Why HDFC Bank Stock is Rallying?
The sharp rally in HDFC Bank Share Price is being attributed to the RBI’s aggressive monetary easing policy. Lower lending rates typically stimulate borrowing, which in turn boosts banks’ loan books — a major revenue source for institutions like HDFC Bank.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated that this development is a positive trigger for HDFC Bank. He noted that long-term investors should continue holding their positions, and new investors may consider buying on dips.
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HDFC Bank Share Price Target
From a technical analysis perspective, the stock remains bullish with strong momentum indicators.
- Immediate Support: ₹1,950
- Immediate Resistance: ₹2,000
- Upside Target: ₹2,050
- Expected Trading Range: ₹1,900 – ₹2,050
Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, emphasized the potential for HDFC Bank’s stock to climb toward ₹2,050, with ₹1,950 acting as a crucial support level. He recommended placing a stop-loss at ₹1,950 for short-term traders.
Adding to this, Jigar S Patel, Senior Manager (Technical Research) at Anand Rathi, remarked that a decisive breakout above ₹2,000 could pave the way for a further rally up to ₹2,050. He also sees the broader range between ₹1,900 and ₹2,050 in the near term.
HDFC Bank Share Price
- The stock is trading above all key moving averages – 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs, indicating sustained bullish sentiment.
- 14-day RSI stands at 65.32, suggesting that while the stock is strong, it is approaching the overbought zone (above 70).
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HDFC Bank Fundamental Snapshot
| Metric | Value |
|---|---|
| P/E Ratio | 22.93 |
| P/B Ratio | 3.30 |
| EPS | ₹86.57 |
| Return on Equity | 14.39% |
| 1-Year Beta | 0.9 (Low Risk) |
With a low beta value of 0.9, HDFC Bank’s stock demonstrates lower volatility compared to the overall market, making it an attractive choice for conservative investors.
Expert Insights: Should You Invest?
HDFC Bank continues to be one of the most fundamentally strong and stable private sector banks in India. Backed by healthy earnings, improving loan book prospects, and favorable policy tailwinds from the RBI, the stock appears to have strong growth potential in the near-to-medium term.
Experts suggest that:
- Long-term investors can hold and accumulate on dips.
- Short-term traders should watch the ₹2,000 level closely for breakout opportunities.
- A stop loss at ₹1,950 is recommended for active positions.
Conclusion
HDFC Bank’s recent surge is not just a reaction to RBI’s rate cut but a signal of its strong fundamentals and market confidence. As the central bank adopts a more accommodative stance, banking stocks like HDFC Bank are well-positioned to benefit from increased credit demand and stronger earnings visibility.
Whether you’re a long-term investor or a short-term trader, HDFC Bank deserves a close watch, especially around the key levels of ₹1,950 to ₹2,050.
