HDFC Bank Shares Crash: Today was a volatile day for the Indian stock market, and HDFC Bank, the largest private sector lender, bore the brunt. Amid widespread selling in IT and metal stocks and weak global cues, HDFC Bank’s stock plunged. By market close, the bank’s stock closed at ₹903.90 on the NSE, a significant decline of 1.82 percent from its previous close. This decline has raised investor concerns as the stock is now very close to its crucial support level.
Today’s Market Conditions
HDFC Bank had a weak start to the session. The stock opened at ₹913 and attempted to recover by touching a high of ₹928.20 in early trade. However, this gain was short-lived, and as the market began to sell, the stock fell sharply to a low of ₹901.
Today’s trading saw heavy volume of approximately 50 million shares, indicating that large investors and institutional investors preferred profit-booking or selling. With a market cap of ₹13.9 lakh crore, the bank remains a market leader, but a continuous decline over the past seven days has weakened its short-term chart.
How can the market mood be on Monday
Technical analysts have advised investors to remain extremely cautious for the upcoming trading session. According to technical indicators on the chart, HDFC Bank is currently trading just above its most important support zone of ₹900-₹902. If the stock breaks this psychological level of ₹900 on Monday and closes below it, a major breakdown could be seen, taking the price to the ₹860 to ₹830 level.
On the upside, the ₹922 level will be the first major resistance for the stock on Monday, followed by stiff resistance at ₹937. The stock is currently trading below all its major moving averages (5-day, 20-day, and 200-day SMAs), which clearly indicates a bearish bias.
However, the RSI is approaching 40, which suggests that if positive news arrives in the market, some short-covering may be seen from lower levels. Most brokerages have maintained a ‘BUY’ rating for the long term and have given targets of ₹1,170 to ₹1,240, but they are also concerned about the slow pace of deposit growth.
Will investors get their money back
Given the current situation, new investors should avoid making hasty purchases on Monday and first test the stock’s stability at the ₹900 level. Small purchases can be made only if the stock holds firmly above ₹900. Investors who are already invested should take a long-term view, as the bank’s fundamentals and recent quarterly profit (₹18,650 crore) remain strong.